Hosmer Industries provides the following information about resources and usage:

	Unused Resources Capacity	Cost Driver Volume
Resources used
Materials	$ 6,000	6,400	pounds
Power	3,864	272	hours
Setups	2,040	62	setups
Purchasing	4,560	64	purchase orders
Client assistance	18,480	40	inquiries
Supervision	8,400	256	labor-hours
Facility cost	6,960	3,360	square meters
Resources supplied
Materials	$ 313,200
Power	46,296
Setups	58,584
Purchasing	58,320
Client assistance	38,160
Supervision	72,912
Facility cost	107,760

Sales revenue for Hosmer Industries is $840,000.

Required:

1. Prepare a traditional income statement.
2. Prepare an activity-based income statement.