56. (Activity-based budgeting) Several years ago, Kingsley Electronic Systems adopted activity-based management and activity-based costing. This year the firm also prepared an activity-based budget for all of its major functions. An illustrative budget is presented below for the receiving department.

Signing receipts for shipments received $ 3,000 Opening shipping containers 80,000 Verifying count and content of container 63,000 Inspecting goods 120,000 Writing receiving reports 48,000 Supervising 68,000 Delivering goods to inventory warehouses 56,000 Total $438,000 While managers are enthused with the potential of the activity-based budgets, they are concerned about how the activity-based budgets relate to resource consumption. Write a memo to management discussing how the activity-based budget can be converted to a resource budget.