Problem 10-41

(Complete text requirements one through three below)Part One:

Total budegeted cost for each activity and the Business Services division: January 2019

Budgeted

Activity: Activity. Cost Driver Rates Total Cost

Storage. 400,000 $0.4925

Requisition Handling. 30,000 $12.50

Pick Packing. 800,000 $1.50

Data Entry - Lines. 800,000 $0.80

Data Entry - Requisitions30,000 $1.20

Desktop Delivery 12,000 $30.00

Total Budgeted Cost for Division

Part Two:

Budgeted total cost for the Business Services division: January 2019

Budgeted Fixed

CostBudgeted Variable Cost

Part Three:

Expected saving in costs: January 2019