Problem 10-57 (Algo) Activity-Based Reporting: Service Organization (LO 10-3, 4) Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $3,000,000. Information regarding resources for the year includes the following.    Resources Used Resources Supplied Marketing $ 217,000   $ 236,000   Depreciation   172,000     179,000   Training personnel   89,000     106,000   Energy   161,000     174,000   Short-term labor   410,000     610,000   Long-term labor   830,000     850,000   Administrative   143,000     160,000         In addition, ACS spent $86,000 on 480 repair verifications with a cost driver rate of $150.   Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.

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Problem 10-57 (Algo) Activity-Based Reporting: Service Organization (LO 10-3, 4)

Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $3,000,000. Information regarding resources for the year includes the following.
 

  Resources Used Resources Supplied
Marketing $ 217,000   $ 236,000  
Depreciation   172,000     179,000  
Training personnel   89,000     106,000  
Energy   161,000     174,000  
Short-term labor   410,000     610,000  
Long-term labor   830,000     850,000  
Administrative   143,000     160,000  
 

   

In addition, ACS spent $86,000 on 480 repair verifications with a cost driver rate of $150.

 

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.

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