Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Required A Required B Prepare an activity-based income statement. Costs Unit Batch Activity-Based Income Statement Resources Used Unused Resource Capacity Resources Supplied $ 0 $ 0 $ 0 0 $ 0 $ 0 Product and customer sustaining $ 0 $ 0 $ 0 Capacity sustaining $ 0 $ 0 $ 0 Total costs 0 0 0 $ Total costs Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the following: Resources Used Resources Supplied Depreciation Training Publicity $ 56,550 $ 58,175 29,250 35,100 Transportation 52,000 55,575 72,800 78,000 Permanent staff 146,250 201,500 Temporary staff 269,750 276,250 Invoicing and records 24,375 27,300 Administrative 45,500 51,350 Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a traditional income statement. Traditional Income Statement Required A Required B Prepare an activity-based income statement. Costs Unit Batch Activity-Based Income Statement Resources Used Unused Resource Capacity Resources Supplied $ 0 $ 0 $ 0 0 $ 0 $ 0 Product and customer sustaining $ 0 $ 0 $ 0 Capacity sustaining $ 0 $ 0 $ 0 Total costs 0 0 0 $ Total costs Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the following: Resources Used Resources Supplied Depreciation Training Publicity $ 56,550 $ 58,175 29,250 35,100 Transportation 52,000 55,575 72,800 78,000 Permanent staff 146,250 201,500 Temporary staff 269,750 276,250 Invoicing and records 24,375 27,300 Administrative 45,500 51,350 Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Chapter9: Responsibility Accounting And Decentralization
Section: Chapter Questions
Problem 1PA: Use the following information to answer the questions that follow. A. Calculate the operating income...
Related questions
Question
Transcribed Image Text:Required:
Management has requested that you do the following:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare a traditional income statement.
Traditional Income Statement
Required A
Required B
Prepare an activity-based income statement.
Costs
Unit
Batch
Activity-Based Income Statement
Resources
Used
Unused
Resource
Capacity
Resources
Supplied
$
0 $
0 $
0
0 $
0 $
0
Product and customer sustaining
$
0 $
0 $
0
Capacity sustaining
$
0 $
0 $
0
Total costs
0
0
0
$
Total costs
Transcribed Image Text:Lozier Catering and Events (LCE) offers a variety of services from small gatherings to large weddings and
corporate retreats. Sales for year 1 totaled $877,500. Information regarding resources for the year includes the
following:
Resources
Used
Resources
Supplied
Depreciation
Training
Publicity
$ 56,550
$ 58,175
29,250
35,100
Transportation
52,000
55,575
72,800
78,000
Permanent staff
146,250
201,500
Temporary staff
269,750
276,250
Invoicing and records
24,375
27,300
Administrative
45,500
51,350
Required:
Management has requested that you do the following:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
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