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

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 $2022.$ The firm has

decided 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.

What are the total budgeted costs for each activity and for the division as a whole in February and March? $($Do not round

intermediate calculations.$)$