Question: Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $2,700,000. Information regarding resources for
Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $2,700,000. Information regarding resources for the year includes the following.
| Resources Used | Resources Supplied | |||||
| Marketing | $ | 233,000 | $ | 239,000 | ||
| Depreciation | 171,000 | 180,000 | ||||
| Training personnel | 86,000 | 112,000 | ||||
| Energy | 163,000 | 171,000 | ||||
| Short-term labor | 470,000 | 630,000 | ||||
| Long-term labor | 840,000 | 850,000 | ||||
| Administrative | 143,000 | 158,000 | ||||
In addition, ACS spent $85,000 on 520 repair verifications with a cost driver rate of $145.
Required:
Management has requested that you do the following:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.


Required A Required B Prepare a traditional income statement. Traditional Income Statement Total costs 0 $ 0 Required A Required B Prepare an activity-based income statement. Activity-Based Income Statement Resources Unused Used Resource Capacity Resources Supplied Costs Unit $ 0 $ 0 $ 0 Batch $ 0 $ 0 $ Product and customer sustaining EA 0 $ 0 $ 0 Capacity sustaining $ 0 $ 0 0 $ 0 A Total costs $ $ 0 0 0 $
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