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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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