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	$	0.50	per machine-hour	5,000	machine-hours
Repairs	$	21	per job	400	jobs
Resources supplied
Energy	$	8,100
Repairs	$	13,200

Sales revenue from finishing totaled $42,000.

Required:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.