Carbon Company provides the following information about resources.

	Unused Resources Capacity			Cost Driver Volume
Resources used
Materials	$	2,100		9,000	pounds
Energy		3,490		390	machine-hours
Setups		0		81	setups
Purchasing		3,700		90	purchase orders
Customer service		4,000		90	returns
Long-term labor		4,800		340	labor-hours
Administrative		8,820		440	labor-hours
Resources supplied
Materials	$	101,100
Energy		21,430
Setups		24,300
Purchasing		26,200
Customer service		17,500
Long-term labor		30,300
Administrative		31,700

Sales revenue for Carbon Company is $550,000.

Required:

a. Prepare a traditional income statement.

Prepare a traditional income statement.

Traditional Income Statement
Total costs

b. Prepare an activity-based income statement.

Activity-Based Income Statement
	Resources Used	Unused Resource Capacity	Resources Supplied
Costs
Unit
Batch
Product and customer sustaining
Capacity sustaining
Total costs