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 $ 0.60 per machine-hour 7,500 machine-hours Repairs $ 14 per job 750 jobs Resources supplied Energy $ 7,500 Repairs $ 12,600 Sales revenue from finishing totaled $36,000.

Required:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.