FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Carbon Company provides the following information about resources.
| Unused Resources Capacity | Cost Driver Volume | ||||
| Resources used | |||||
| Materials | $ | 2,200 | 9,000 | pounds | |
| Energy | 2,740 | 380 | machine-hours | ||
| Setups | 0 | 89 | setups | ||
| Purchasing | 4,600 | 90 | purchase orders | ||
| Customer service | 7,800 | 80 | returns | ||
| Long-term labor | 5,440 | 330 | labor-hours | ||
| Administrative | 4,640 | 440 | labor-hours | ||
| Resources supplied | |||||
| Materials | $ | 101,200 | |||
| Energy | 20,980 | ||||
| Setups | 24,920 | ||||
| Purchasing | 26,200 | ||||
| Customer service | 21,400 | ||||
| Long-term labor | 29,200 | ||||
| Administrative | 28,400 | ||||
Sales revenue for Carbon Company is $580,000.
Required:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
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