Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled \($2,700,000.\) Information regarding resources for the year includes the following:

In addition, ACS spent \($84,000\) on 500 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.

c. Write a short report to management explaining why the activity-based income statement provides useful information to managers. Use the information from requirements

(a) and (b)
to develop examples for your report.

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Marketing Depreciation Resources Used $224,000 Resources Supplied $240,000 174,000 179,000 Training personnel 90,000 108,000 Energy 160,000 171,000 Short-term labor 450,000 620,000 Long-term labor 830,000 850,000 Administrative. 140,000 158,000