Conlon Enterprises reports the following information about resources.

	Cost Driver Rate			Cost Driver Volume
Resources used
Setups	$	345	per run	400	runs
Clerical		60	per page	2,000	pages typed
Resources supplied
Setups	$	142,250
Clerical		130,100

Sales revenue totaled $290,000.

Required:

a. Prepare a traditional income statement.

Traditional Income Statement
Sales revenue
Setup costs
Clerical costs
Operating profit

b. Prepare an activity-based income statement.

Activity-Based Income Statement
	Resources Used	Unused Resource Capacity	Resources Supplied
Sales revenue
Costs
Volume related - Clerical
Batch related - Setups
Total costs
Operating profits