Question

Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used...

Conlon Enterprises reports the following information about resources.

Cost Driver Rate Cost Driver Volume
Resources used
Setups $ 305 per run 360 runs
Clerical 45 per page 1,200 pages typed
Resources supplied
Setups $ 113,650
Clerical 69,200


Sales revenue totaled $250,000.

A. Prepare a traditional income statement.

Traditional Income Statement
Sales revenue
Setup costs   
Clerical costs
Operating profit

B. Prepare an activity-based income statement.

Activity-Based Income Statement
Resources Used Unused Resource Capacity Resources Supplied
Sales revenue
Costs
Volume related - Clerical
Batch related - Setups
Total costs
Operating profits

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