Allcott Computer Services (ACS) provides computer training and repair services for schools and local businesses. Sales for year 1 totaled $2,800,000. Information regarding resources for the year includes the following.

	Resources Used			Resources Supplied
Marketing	$	220,000		$	244,000
Depreciation		174,000			175,000
Training personnel		85,000			108,000
Energy		164,000			173,000
Short-term labor		420,000			600,000
Long-term labor		830,000			840,000
Administrative		141,000			158,000

In addition, ACS spent $85,000 on 540 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.