Question
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,700 8,000 pounds Energy 3,880 370 machine-hours
Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,700 8,000 pounds Energy 3,880 370 machine-hours Setups 0 83 setups Purchasing 3,600 100 purchase orders Customer service 8,400 80 returns Long-term labor 7,100 320 labor-hours Administrative 6,740 430 labor-hours Resources supplied Materials $ 90,700 Energy 21,270 Setups 24,900 Purchasing 26,600 Customer service 20,400 Long-term labor 29,500 Administrative 29,100 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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