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Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance $ 5,900 3,854 2,020 4,540 18,460 8,380 6,940 $ 306,700 46,014 58,502 57,660 38,100 72,636 104,380 Supervision Facility cost Sales revenue for Hosmer Industries is $830,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Cost Driver Volume 6,400 pounds. 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters

Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance $ 5,900 3,854 2,020 4,540 18,460 8,380 6,940 $ 306,700 46,014 58,502 57,660 38,100 72,636 104,380 Supervision Facility cost Sales revenue for Hosmer Industries is $830,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Cost Driver Volume 6,400 pounds. 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Required A Required B $ 5,900 3,854 Supervision Facility cost Sales revenue for Hosmer Industries is $830,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. 2,020 4,540 18,460 8,380 6,940 Sales revenue Materials Power Setups Purchasing Client assistance Supervision Facility cost $ 306,700 46,014 58,502 57,660 38,100 72,636 104,380 Prepare a traditional income statement. Total costs Operating profit Complete this question by entering your answers in the tabs below. Traditional Income Statement Cost Driver Volume 6,400 pounds. 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters 0 0 Required B >
Transcribed Image Text:Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Required A Required B $ 5,900 3,854 Supervision Facility cost Sales revenue for Hosmer Industries is $830,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. 2,020 4,540 18,460 8,380 6,940 Sales revenue Materials Power Setups Purchasing Client assistance Supervision Facility cost $ 306,700 46,014 58,502 57,660 38,100 72,636 104,380 Prepare a traditional income statement. Total costs Operating profit Complete this question by entering your answers in the tabs below. Traditional Income Statement Cost Driver Volume 6,400 pounds. 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters 0 0 Required B >
Prepare an activity-based Income statement. Sales revenue Costs Unit Materials Power Batch Setups Purchasing Product and customer sustaining Client assistance Capacity sustaining Supervision Facility cost Total costs Operating profit Activity-Based Income Statement Unused Resource Capacity Resources Used $ $ $ $ $ . $ 0 $ $ 0 $ $ 0 $ $ 5,900 3,854 2,020 11,774 $ 2,020 4,540 Resources Supplied 6,560 $ 18,460 18,460 $ 8,380 6.940 05 15,320 $ 05 52,114 $ 0 0 0 0 0 $ 830,000 $ 0 830,000
Transcribed Image Text:Prepare an activity-based Income statement. Sales revenue Costs Unit Materials Power Batch Setups Purchasing Product and customer sustaining Client assistance Capacity sustaining Supervision Facility cost Total costs Operating profit Activity-Based Income Statement Unused Resource Capacity Resources Used $ $ $ $ $ . $ 0 $ $ 0 $ $ 0 $ $ 5,900 3,854 2,020 11,774 $ 2,020 4,540 Resources Supplied 6,560 $ 18,460 18,460 $ 8,380 6.940 05 15,320 $ 05 52,114 $ 0 0 0 0 0 $ 830,000 $ 0 830,000
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