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Required Information [The following information applies to the questions displayed below.] OFC Company of Kansas City prints business forms and other speclalty paper products, such
Required Information [The following information applies to the questions displayed below.] OFC Company of Kansas City prints business forms and other speclalty paper products, such as writing paper, envelopes, note cards, and greeting cards. Its Business Services division offers Inventory management services and desktop dellvery on request. The division uses an actlvity-based costing (ABC) system. The budgeted usage of each actlvity cost driver and cost-driver rates for January 2019 for the Business Services division are: For the month, the division expects to make 10,100 dellverles to dellver 1,010,000 cartons to customers. Requlred: 1. What is the total budgeted cost for each actlvity and for the Business Services division in January 2019 ? 2. Assume, In contrast to requirement 1, that actlvity-related information was not avallable. Rather, the only information avallable is that the budgeted fixed costs for the month are $1,158,000, and the budgeted varlable cost per carton Is estimated as $1.85. What is the budgeted total cost for the month using this single volume-based approach? 3. Dorles Supply Chain Management Company offers to Install an electronic order-processing system that transmits customer requisitions vla the Internet to the Business Services division for Immediate pick, packing, and delivery. No requisition handling and data entry will be needed once the system is fully functional. How much savings can the Business Services division expect from switching to the new system before considering the payment to Dorles? Complete this question by entering your answers in the tabs below. What is the total budgeted cost for each activity and for the Business Services division in January 2019
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