Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $2,900,000. Information regarding resources for the year includes the following.

	Resources Used			Resources Supplied
Marketing	$	225,000		$	245,000
Depreciation		166,000			183,000
Training personnel		91,000			106,000
Energy		156,000			167,000
Short-term labor		460,000			620,000
Long-term labor		840,000			850,000
Administrative		144,000			154,000

In addition, ACS spent $85,000 on 520 repair verifications with a cost driver rate of $150.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.