The percentage of time spent by each employee of the Sales Division on each of the above activities is given in the following table: Research Gene Assistant Administrative Assistant 20% Research Shipping Jobbers Basic ads Ultima ads Office management Additional information is as follows: a. Depreciation on the office equipment belongs to the office management activity. b. Of the $21,000 for office supplies and other expenses, $5,000 can be assigned to telephone costs which can be split evenly between the shipping and jobbers' activities. An additional $2,400 per year is attributable to Internet connections and fees, and the bulk of these costs (80 percent) are assignable to research. The remainder is a cost of office management. All other office supplies and costs are assigned to the office management activity. Required: 1. Prepare an activity-based budget for next year by activity. Use the expected level of sales activity. Olympus, Inc. Activity-Based Budget For Next Year Research: Salaries Shipping: Office Supplies x Advertising X Jobbers: DDDDDDDDD Basic ads: Ultima ads: Office management: Total The percentage of time spent by each employee of the Sales Division on each of the above activities is given in the following table: Research Gene Assistant Administrative Assistant 20% Research Shipping Jobbers Basic ads Ultima ads Office management Additional information is as follows: a. Depreciation on the office equipment belongs to the office management activity. b. Of the $21,000 for office supplies and other expenses, $5,000 can be assigned to telephone costs which can be split evenly between the shipping and jobbers' activities. An additional $2,400 per year is attributable to Internet connections and fees, and the bulk of these costs (80 percent) are assignable to research. The remainder is a cost of office management. All other office supplies and costs are assigned to the office management activity. Required: 1. Prepare an activity-based budget for next year by activity. Use the expected level of sales activity. Olympus, Inc. Activity-Based Budget For Next Year Research: Salaries Shipping: Office Supplies x Advertising X Jobbers: DDDDDDDDD Basic ads: Ultima ads: Office management: Total
