Carbon Company provides the following Information about resources. Unused Resources Capacity Resources used Materials Energy Setups Purchasing Customer service Long-term labor Administrative Resources supplied Materials Energy Setups Purchasing Customer service Long-term labor Administrative $ 2,800 1,630 5,000 9,600 4,620 2,150 $90,800 21,910 24,300 26,600 19,200 29,700 28,700 Cost Driver Volume 8,000 pounds 390 machine-hours 81 setups 90 purchase orders 60 returns 330 labor-hours 450 labor-hours Sales revenue for Carbon Company is $580,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based Income statement.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Carbon Company provides the following information about resources.
Resources used
Materials
Energy
Setups
Purchasing
Customer service
Long-term labor
Administrative
Resources supplied
Materials
Energy
Setups
Purchasing
Customer service
Long-term labor
Administrative
Unused
Resources
Capacity
$ 2,800
1,630
8
5,000
9,600
4,620
2,150
$90,800
21,910
24,300
26,600
19, 200
29,700
28,700
Cost Driver Volume
8,000 pounds
390 machine-hours
81 setups
90 purchase orders
60 returns
330 labor-hours
450 labor-hours
Sales revenue for Carbon Company is $580,000.
Required:
a. Prepare a traditional Income statement.
b. Prepare an activity-based Income statement.
Transcribed Image Text:Carbon Company provides the following information about resources. Resources used Materials Energy Setups Purchasing Customer service Long-term labor Administrative Resources supplied Materials Energy Setups Purchasing Customer service Long-term labor Administrative Unused Resources Capacity $ 2,800 1,630 8 5,000 9,600 4,620 2,150 $90,800 21,910 24,300 26,600 19, 200 29,700 28,700 Cost Driver Volume 8,000 pounds 390 machine-hours 81 setups 90 purchase orders 60 returns 330 labor-hours 450 labor-hours Sales revenue for Carbon Company is $580,000. Required: a. Prepare a traditional Income statement. b. Prepare an activity-based Income statement.
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