Don't provide answers in image format Abbott Business Services (ABS) generated revenue of $653,800 processing accounts payable and payroll transactions for clients. ABSreports the following information about resources in two functions:Resources usedProcess transactionsAdminister accountsResources suppliedProcess transactionsAdminister accountsRequired:a. Compute the cost of unused resource capacity at Abbott Business Services.b. Prepare a traditional income statement.c. Prepare an activity-based income statement.Required A Required B Required CComplete this question by entering your answers in the tabs below.Prepare an activity-based income statement.RevenueCostsCost Driver Rate$ 0.008 per transaction$525 per account$ 226,000$ 296,000Volume related - Process transactionsBatch related - Administer accountsTotal costsOperating profitsActivity-Based Income StatementResourcesUsed$UnusedResourceCapacity0 $Cost Driver Volume17,540,000 transactions446 accountsResourcesSupplied0 $0$ 653,800$0653,800

The activity-based costing allocates costs based on the activities consumed by each product. It also…

Abbott Business Services (ABS) generated revenue of $653,800 processing accounts payable and payroll transactions for clients. ABS reports the following information about resources in two functions: Resources used Process transactions Administer accounts Resources supplied Process transactions Administer accounts Cost Driver Rate $ 0.008 per transaction $ 525 per account $ 226,000 $ 296,000 Required: a. Compute the cost of unused resource capacity at Abbott Business Services. b. Prepare a traditional income statement. c. Prepare an activity-based income statement. Cost Driver Volume 17,540,000 transactions 446 accounts

Abbott Business Services (ABS) generated revenue of $653,800 processing accounts payable and payroll transactions for clients. ABS reports the following information about resources in two functions: Resources used Process transactions Administer accounts Resources supplied Process transactions Administer accounts Cost Driver Rate $ 0.008 per transaction $ 525 per account $ 226,000 $ 296,000 Required: a. Compute the cost of unused resource capacity at Abbott Business Services. b. Prepare a traditional income statement. c. Prepare an activity-based income statement. Cost Driver Volume 17,540,000 transactions 446 accounts

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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