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 20X1 for the Business Services division are: Activity Storage Requisition handling. Pick packing Data entry Desktop delivery Cost Driver Cartons in inventory Requisitions Lines Lines Requisitions Per delivery Budgeted Activity 550,000 60,000 875,000 875,000 45,000 19,500 Cost-Driver Rate $ 0.5120 per carton per month For the month, the division expects to make 11,400 deliveries to deliver 1,140,000 cartons to customers. 12.50 1.70 0.80 1.26 44.00 Exercise 10-42 (Algo) Activity-Based Budgeting (ABB) with Continuous Improvement [LO 10-6, 10-7] OFC Company has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a areful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and nit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2022. The firm has lecided to delay the implementation of the program for customer-sustaining and facility-level activities until 2023. The firm expects he amount of cost-driver usage in each of the next two months to be the same as those in January. Required: Identify unit-level and batch-level activities. . What are the total budgeted costs for each activity and for the division as a whole in February and March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify unit-level and batch-level activities. Storage Pick packing Data entry-Lines Requisition handling Data entry-Requisitions Desktop delivery
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 20X1 for the Business Services division are: Activity Storage Requisition handling. Pick packing Data entry Desktop delivery Cost Driver Cartons in inventory Requisitions Lines Lines Requisitions Per delivery Budgeted Activity 550,000 60,000 875,000 875,000 45,000 19,500 Cost-Driver Rate $ 0.5120 per carton per month For the month, the division expects to make 11,400 deliveries to deliver 1,140,000 cartons to customers. 12.50 1.70 0.80 1.26 44.00 Exercise 10-42 (Algo) Activity-Based Budgeting (ABB) with Continuous Improvement [LO 10-6, 10-7] OFC Company has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a areful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and nit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2022. The firm has lecided to delay the implementation of the program for customer-sustaining and facility-level activities until 2023. The firm expects he amount of cost-driver usage in each of the next two months to be the same as those in January. Required: Identify unit-level and batch-level activities. . What are the total budgeted costs for each activity and for the division as a whole in February and March? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Identify unit-level and batch-level activities. Storage Pick packing Data entry-Lines Requisition handling Data entry-Requisitions Desktop delivery
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
![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 20X1 for the Business Services division are:
Activity
Storage
Requisition handling.
Pick packing
Data entry
Desktop delivery
Cost Driver
Cartons in inventory
Requisitions
Lines
Lines
Requisitions
Per delivery
Budgeted Activity
550,000
60,000
875,000
875,000
45,000
19,500
Cost-Driver Rate
$ 0.5120 per carton per month
For the month, the division expects to make 11,400 deliveries to deliver 1,140,000 cartons to customers.
12.50
1.70
0.80
1.26
44.00
Exercise 10-42 (Algo) Activity-Based Budgeting (ABB) with Continuous Improvement [LO 10-6, 10-7]
OFC Company has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a
areful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and
nit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2022. The firm has
lecided to delay the implementation of the program for customer-sustaining and facility-level activities until 2023. The firm expects
he amount of cost-driver usage in each of the next two months to be the same as those in January.
Required:
Identify unit-level and batch-level activities.
. What are the total budgeted costs for each activity and for the division as a whole in February and March?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Identify unit-level and batch-level activities.
Storage
Pick packing
Data entry-Lines
Requisition handling
Data entry-Requisitions
Desktop delivery](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F42885075-5b0e-48cf-9602-9ddec1cd45e6%2F3ce54533-309d-4b93-b324-a266c5662dac%2Fezhlff_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 20X1 for the Business Services division are:
Activity
Storage
Requisition handling.
Pick packing
Data entry
Desktop delivery
Cost Driver
Cartons in inventory
Requisitions
Lines
Lines
Requisitions
Per delivery
Budgeted Activity
550,000
60,000
875,000
875,000
45,000
19,500
Cost-Driver Rate
$ 0.5120 per carton per month
For the month, the division expects to make 11,400 deliveries to deliver 1,140,000 cartons to customers.
12.50
1.70
0.80
1.26
44.00
Exercise 10-42 (Algo) Activity-Based Budgeting (ABB) with Continuous Improvement [LO 10-6, 10-7]
OFC Company has decided to implement a kaizen (continuous-improvement) program to enhance operational efficiency. After a
areful study, management and employees agree that the firm will be able to reduce cost rates for batch-level activities by 2% and
nit-level activities (other than Storage) by 1% per month during the first year of the program starting February 2022. The firm has
lecided to delay the implementation of the program for customer-sustaining and facility-level activities until 2023. The firm expects
he amount of cost-driver usage in each of the next two months to be the same as those in January.
Required:
Identify unit-level and batch-level activities.
. What are the total budgeted costs for each activity and for the division as a whole in February and March?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Identify unit-level and batch-level activities.
Storage
Pick packing
Data entry-Lines
Requisition handling
Data entry-Requisitions
Desktop delivery
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