Dunn’s Manufacturing uses ABB. A recent study was done of the activities of the company ’s one purchasing manager who is paid $75,000 per year for her efforts. The following is the list of activities and how much time (in percentage terms) she reported spending on each activity.

REQUIRED:

Using the information in the above table, develop an activity- based budget for the purchasing manager. Specifically, use the data and the manager’s salary to generate a list of activities and their costs.

Transcribed Image Text:

Activity Review purchase requests % of Time 5% Place orders D% Expedite orders Verify shipment records 20% 5% Validate invoices D% Go to meetings 20% Manage purchasing clerks 30%