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	8,500	machine-hours
Repairs	$	13	per job	850	jobs
Resources supplied
Energy	$	7,700
Repairs	$	12,800

Sales revenue from finishing totaled $38,000.

Required:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.