Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
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Carbon Company provides the following information about resources.
| Unused Resources Capacity | Cost Driver Volume | ||||
| Resources used | |||||
| Materials | $ | 2,500 | 10,000 | pounds | |
| Energy | 5,750 | 360 | machine-hours | ||
| Setups | 0 | 89 | setups | ||
| Purchasing | 4,000 | 90 | purchase orders | ||
| Customer service | 7,900 | 70 | returns | ||
| Long-term labor | 4,150 | 350 | labor-hours | ||
| Administrative | 4,880 | 440 | labor-hours | ||
| Resources supplied | |||||
| Materials | $ | 122,500 | |||
| Energy | 21,950 | ||||
| Setups | 24,920 | ||||
| Purchasing | 26,500 | ||||
| Customer service | 20,500 | ||||
| Long-term labor | 29,700 | ||||
| Administrative | 28,200 | ||||
Sales revenue for Carbon Company is $590,000.
Required:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
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- Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,200 9,000 pounds Energy 2,740 380 machine-hours Setups 0 89 setups Purchasing 4,600 90 purchase orders Customer service 7,800 80 returns Long-term labor 5,440 330 labor-hours Administrative 4,640 440 labor-hours Resources supplied Materials $ 101,200 Energy 20,980 Setups 24,920 Purchasing 26,200 Customer service 21,400 Long-term labor 29,200 Administrative 28,400 Sales revenue for Carbon Company is $580,000. Required: a. Prepare a traditional income statement.b. Prepare an activity-based income statement.Carbon Company provides the following information about resources. Unused Resources Capacity Cost Driver Volume Resources used Materials $ 2,500 10,000 pounds Energy 4,670 350 machine-hours Setups 0 86 setups Purchasing 3,600 100 purchase orders Customer service 7,000 90 returns Long-term labor 4,960 340 labor-hours Administrative 7,760 440 labor- hours Resources supplied Materials $ 122,500 Energy 21,820 Setups 24,080 Purchasing 26,600 Customer service 20,500 Long- term labor 29,100 Administrative 30,200 Sales revenue for Carbon Company is $590,000. Required: a. Prepare a traditional income statement. b. Prepare an activity- based income statement.Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Cost Driver Volume Resources used Materials Power Setups Purchasing $ 4,800 $ 3,744 $ 1,800 $ 4,320 Client assistance $18,240 $ 8,160 $ 6,720 6,400 272 62 64 $ 235,200 $ 42,912 $ 57,600 $ 50,400 $ 37,440 $ 69,600 $ 67,200 40 256 3,360 Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance Supervision Facility cost Sales revenue for Hosmer Industries is $720,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. pounds hours setups purchase orders inquiries labor-hours square meters
- Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $144,000 6,000 2,000 Assembly Number of Parts 71,000 25,000 46,000 Machine Maintenance Machine Hours 200,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign.Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 395 per run 450 runs Clerical 35 per run 3,000 pages typed Resources supplied Setups $181,200 Clerical 113,900 Sales revenue totaled $340,000. Required: Prepare an activity-based income statement. Activity-Based Income Statement Resources Used Unused Resource Capacity Resources Supplied Sales revenue _____________…eBook Carlton's Kitchen's three cost pools and overhead estimates are as follows: Activity Cost Pool Cost Driver EstimatedOverhead Use perProduct A Use perProduct B Machine Setups Setups $162,000 5,000 4,000 Assembly Number of Parts 68,000 24,000 44,000 Machine Maintenance Machine Hours 150,000 13,000 37,000 Compare the overhead allocation using (A) the traditional allocation method and (B) the activity-based costing method. (Hint: the traditional method uses machine hours as the allocation base.) For those boxes in which you must enter subtractive or negative numbers use a minus sign. Product A Product B Total Overhead (ABC) $fill in the blank 1 $fill in the blank 2 Total overhead (traditional) fill in the blank 3 fill in the blank 4 Difference $fill in the blank 5 $fill in the blank 6
- Conlon Enterprises reports the following information about resources. Cost Driver Rate Cost Driver Volume Resources used Setups $ 380 per run 435 runs Clerical 45 per page 2,700 pages typed Resources supplied Setups $ 168,600 Clerical 130,100 Sales revenue totaled $325,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.Indirect cost allocationCalculate the overhead surcharges for material, manufacturing & admin based on the followinginformation (numbers in kEUR, unless stated otherwise):Information on direct costsDirect material costs 5,000Direct manufacturing costs 7,500 Information on indirect costsEnergy 2,100Maintenance 500Vehicles 360Material 240Manufacturing 1,200Admin 750 Information on cost allocationEnergy 15,000 MWh manufacturing, 3,500 MWh maintenance, 1500 MWh material, 1,000 MWh admin Maintenance 5 hrs vehicles, 35 hrs manufacturing, 5 hrs material, 5 hrs adminVehicles 3 cars material, 6 cars manufacturing, 21 cars adminABC Company has an ABC system with three pools: Total cost in cost pool Total $13,000 Activity Product X Machine setups Customer service Maintenance Cost Driver Product Y #setups #orders machine- hours $6,000 $10,000 Compute total capacity costs allocated to product X. Group of answer choices $29,000 $9,000 $18,500 $5,000 not enough information Activity volume (#cost driver units) 45 15 25 20 65 5 20 25 50
- Required information The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Costs Number of employees Square feet of space occupied Hours of press time Departmental costs before allocations Allocations: Service Departments Administration Janitorial Maintenance $ 144,200 $ 108,150 $ 49,440 140 20,000 Administration costs Janitorial costs Maintenance costs Total costs after allocations 60 15,000 Administration $ The company allocates service department costs by the step-down method in the following order: Administration (number of employees), Janitorial (space occupied), and Maintenance (hours of press time). Service Departments Janitorial $ 144,200 $ 108,150 $ 35 10,000 Required: Using the step-down method, allocate the service department costs to the operating departments. (Please enter allocations from a department as negative and allocations to a department as positive. The line…Accounting Questionin Feed | LinkedIn studenthomeworks.... Hours Calculator: S... Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290. Oa. $384,200 Ob. $731,700 Oc. $187,900 Od. $543,800 Chock M. Marl البال ghmentSessionLocator=&inprogress=false Login to Applicant... 3 BMTX: Card Status South University Disney+ | Movies a... W a O 2 46°F Previous 4x » (? Next ENG 10:09 PM US 3/25/2023
