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Problem 10-73 (Static) Activity-Based Reporting: Manufacturing (LO 10-4, 5) Barr Plastics makes parts for a variety of manufacturing applications. Sales last year totaled $3,060,000.
Problem 10-73 (Static) Activity-Based Reporting: Manufacturing (LO 10-4, 5) Barr Plastics makes parts for a variety of manufacturing applications. Sales last year totaled $3,060,000. Information regarding resources for the month follows. Administrative Customer service Depreciation Energy Long-term labor Marketing Materials Parts management Quality inspections Setups Short-term labor Resources Used $ 170,000 Resources Supplied $ 252,000 34,000 72,000 204,000 360,000 170,000 180,000 85,000 126,000 238,000 270,000 510,000 540,000 102,000 126,000 153,000 180,000 238,000 360,000 68,000 86,400 In addition, Barr spent $90,000 on 60 engineering changes with a cost-driver rate of $1,400, and $108,000 on 10 outside contracts with a cost driver rate of $10,800. Required: The CFO at Barr has requested the following: a. A traditional income statement. b. An activity-based income statement.
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