Question
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 4,670 350 machine-hours
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 4,670 350 machine-hours Setups 0 86 setups Purchasing 3,600 100 purchase orders Customer service 7,000 90 returns Long-term labor 4,960 340 labor-hours Administrative 7,760 440 labor-hours Resources supplied Materials $ 122,500 Energy 21,820 Setups 24,080 Purchasing 26,600 Customer service 20,500 Long-term labor 29,100 Administrative 30,200 Sales revenue for Carbon Company is $590,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
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