Abbott Business Services $($ABS$)$ generated revenue of $$663,800$ processing accounts payable and payroll transactions for clients. ABS reports the following information about resources in two functions:

Cost Driver Rate Cost Driver Volume

Resources used

Process transactions $ $0\mathrm{.}008$ per transaction $17,565,000$ transactions

Administer accounts $ $525$ per account $456$ accounts

Resources supplied

Process transactions $ $236,000$

Administer accounts $ $306,000$

Required:

Compute the cost of unused resource capacity at Abbott Business Services.

Prepare a traditional income statement.

Prepare an activity$-$based income statement.