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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
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 | $ | 0.70 | per machine-hour | 8,000 | machine-hours |
| Repairs | $ | 17 | per job | 700 | jobs |
| Resources supplied | |||||
| Energy | $ | 8,700 | |||
| Repairs | $ | 13,800 | |||
Sales revenue from finishing totaled $48,000.
Required:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
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