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.

Allcott Computer Services (ACS) provides computer training and repair services for schoolsand local businesses. Sales for year 1 totaled $2,700,000. Information regarding resources

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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