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Barr Plastics makes parts for a variety of manufacturing applications. Sales last year totaled $3,060,000. Information regarding resources for the month follows. Resources Used Resources
Barr Plastics makes parts for a variety of manufacturing applications. Sales last year totaled $3,060,000. Information regarding resources for the month follows.
Resources Used | Resources Supplied | |
---|---|---|
Administrative | $ 170,000 | $ 252,000 |
Customer service | 34,000 | 72,000 |
Depreciation | 204,000 | 360,000 |
Energy | 170,000 | 180,000 |
Long-term labor | 85,000 | 126,000 |
Marketing | 238,000 | 270,000 |
Materials | 510,000 | 540,000 |
Parts management | 102,000 | 126,000 |
Quality inspections | 153,000 | 180,000 |
Setups | 238,000 | 360,000 |
Short-term labor | 68,000 | 86,400 |
In addition, Barr spent $90,000 on 60 engineering changes with a cost-driver rate of $1,400, and $108,000 on 10 outside contracts with a cost driver rate of $10,800.
Required:
The CFO at Barr has requested the following:
- A traditional income statement.
- An activity-based income statement.
A traditional income statement. Required A Required B
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