10-3

Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow Cost Driver Rate Cost Driver Volume Resources used 0.6 per machine-hour 8,500 machine-hours Energy 13 per job Repairs 850 jobs Resources supplied 7,700 Energy $12,800 Repairs Sales revenue from finishing totaled $38,000 Required: a. Prepare a traditional income statement. Traditional Income Statement Finishing sales Energy costs Repair costs Operating profit