Conlon Enterprises reports the following information about resources.

Cost Driver Rate Cost Driver Volume Resources used Setups $ 355 per run 410 runs Clerical 40 per page 2,200 pages typed Resources supplied Setups $ 148,600 Clerical 96,100

Sales revenue totaled $300,000.

Required:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.

Required A Required B Prepare a traditional income statement. Traditional Income Statement Sales revenue Setup costs Clerical costs Operating profit Prepare an activity-based income statement. Activity-Based Income Statement Unused Resources Resources Used Resource Supplied Capacity Sales revenue Costs Volume related - Clerical Batch related - Setups Total costs Operating profits