Problem $10-63($Algo$)$ Actlvity$-$Based Reporting and Capacity $($LO $10-4,5)$

Hosmer Industries provides the following information about resources and usage:

$\backslash$table$[[,\backslash$table$[[$Unused$],[$Resources$],[$Capacity$]],cost,$Driver Volume$],[$Resources used$],[$Materials$,$$$6,200,6,400,$pounds$],[$Power$,3,884,272,$hours$],[$Setups$,2,080,62,$setups$],[$Purchasing$,4,600,64,$purchase orders$],[$client assistance,$18,520,46,$inquinies$],[$Supervision$,8,440,256,1$abor$-$hours$],[$Facility cost$,7,060,3,360,$square tieters$],[$Resources supplied,,,$],[$Materials$,$$$326,260,,],[$Power$,46,860,,],[$Setups$,58,748,,],[$Purchasing$,59,640,,],[$Client assistance,$38,280,,],[$Supervision$,73,464,,],[$Facllity cost$,114,526,,]]$

Sales revenue for Hosmer Industries is $$860,000.$

Required:

a$.$ Prepare a traditional income statement:

b$.$ Prepare an activity$-$based income statement.

Complete this question by entering your answers in the tabs below.

Required $1$ Required B

Prepare a treditional income statement.

Traditional Income Statement