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Storage Cartons in inventory 518,888 $ 8.5128 [carton/loath Requisition handling Requisitions 52,888 17.58 Pick packing Lines 855,888 1.54 Data entry...
OFC Company has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a careful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and unit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2019. The firm has decided to delay the implementation of the program for customer-sustaining and facility-level activities until 2020. The firm expects the amount of cost-driver usage in each of the next two months to be the same as those in January.
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?Storage Cartons in inventory 518,888 $ 8.5128 [carton/loathRequisition handling Requisitions 52,888 17.58Pick packing Lines 855,888 1.54Data entry Lines 855,888 8.82Requisitions 41, 888 1 . 38Desktop delivery Per delivery 17,588 41.88