a). Compute the cost drive rate for each resource.

b). Sales revenue for Carbon Company is $300,000. Prepare a traditional income statement and an activity-based income statement.

I LAN TUJI presources Used versus Resources Supplied: Working Backward * Company provides the following information about resources: C ost Driver Volume Unused Resources Capacity Resources used Materials ...... $ 2,000 Energy.............. 1,560 Setups.............. -0- Purchasing. .......... 1,800 Customer service . . . . . . ... 7,600 Long-term labor... 3,400 Administrative ............ 2,800 Resources supplied Materials . ....... $98,000 Energy............ 17,880 Setups........... 24,000 Purchasing. ....... 21,000 Customer service . 15,600 Long-term labor. 29,000 Administrative ........ 28,000 8,000 pounds 340 machine-hours 80 setups 80 purchase orders 50 returns 320 labor-hours 420 labor-hours