Required information {The following information applies to the questions displayed below] OFC ICompany of Kansas City prints business forms and other...

OFC Company of Kansa City prints business forms and other specialty paper products

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Required information {The following information applies to the questions displayed below] OFC ICompany 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 deliveryon request. The division uses an activity-based costing (ABC) system. The budgeted usage of each activity cost driver andcost-driver rates for January 2019 for the Business Services division are: Budgeted Activity Cost Driver Activity Cost—Driver RateStorage Cartons in inventory 498,866 $ 8.5226 {carton/monthRequisition handling Requisitions 48,360 23.56Pick packing Lines 845,366 1.52Data entry Lines 845,360 6.83 Requisitions 39,369 1.25Desktop delivery Per delivery 16,560 41.09 [—For the month, the division expects to make 10,800 deliveries to deliver 1,080,000 cartons to customers. OFC Company has decided to implement a kaizen {continuous—improvement) program to enhance operational efficiency. After acareful study, management and employees agree that the firm will be able to reduce cost rates for batch—level activities by 2% andunit—level activities {otherthan Storage} by 1% per month during the first year ofthe program starting February 2019. The firm hasdecided to delay the implementation ofthe program for customer—sustaining and facility—level activities until 2020. The firm expectsthe amount of cost—driver usage in each ofthe next two months to be the same as those in January. Required:1. Identify unit—level and batch—level activities.2. What are the total budgeted costs for each activity and for the division as a whole in February and March?