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[The following information applies to the questions displayed below.] OFC Company of Kansas City prints business forms and other specialty paper products, such as writing
[The following information applies to the questions displayed below.] OFC Company of Kansas City prints business forms and other specialty paper products, such as writing paper, envelopes, note cards, and greeting cards. Its Business Services division offers inventory management services and desktop delivery on request. The division uses an activity-based costing (ABC) system. The budgeted usage of each activity cost driver and cost-driver rates for January 2016 for the Business Services dIviSIon are: Budgeted Activity Storage Requisition handling Pick packing Data entry Activity 580,000 0.5820/carton/month 66,000 890,000 890,000 48,000 21,000 Cost Driver Cost-Driver Rate Cartons in inventory Requisitions Lines Lines Requisitions Per delivery 21.50 1.55 0.98 1.31 44.00 Desktop delivery For the month, the division expects to make 11,800 deliveries to deliver 1,180,000 cartons to customers
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