Tri-State Mill uses a special sander to finish lumber. Data on the sander and its usage follow.

	Cost Driver Rate			Cost Driver Volume
Resources used
Energy	$	0.80	per machine-hour	7,000	machine-hours
Repairs	$	13	per job	900	jobs
Resources supplied
Energy	$	7,800
Repairs	$	12,900

Sales revenue from finishing totaled $39,000.

Required:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.