Problem $10-63($Static$)$ Activity$-$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,$$4,800,6,400$ pounds,,$],[$Materials$,3,744,272$ hours,,$],[$Power$,1,800,62$ setups,,$],[$Setups$,4,320,64$ purchase orders,,$],[$Purchasing$,18,240,40$ inquiries,,$],[$Client assistance,$8,160,256$ labor$-$hours,,$],[$Supervision$,6,720,3,360$ square meters,,$],[$Facility cost$,,,,],[$Resources supplied,$$235,200,,,],[$Materials$,42,912,,,],[$Power$,57,600,,,],[$Setups$,50,400,,,],[$Purchasing$,37,440,,,],[$Client assistance,$69,600,,,],[$Supervision$,67,200,,,],[$Facility cost$,,,,]]$

Sales revenue for Hosmer Industries is $$720,000.$

Required:

a$.$ Prepare a traditional income statement.

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

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Required $0$

Prepare as traditional income statement.