Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance $ 5,900 3,854 2,020 4,540 18,460 8,380 6,940 $ 306,700 46,014 58,502 57,660 38,100 72,636 104,380 Supervision Facility cost Sales revenue for Hosmer Industries is $830,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Cost Driver Volume 6,400 pounds. 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters
Hosmer Industries provides the following information about resources and usage: Unused Resources Capacity Resources used Materials Power Setups Purchasing Client assistance Supervision Facility cost Resources supplied Materials Power Setups Purchasing Client assistance $ 5,900 3,854 2,020 4,540 18,460 8,380 6,940 $ 306,700 46,014 58,502 57,660 38,100 72,636 104,380 Supervision Facility cost Sales revenue for Hosmer Industries is $830,000. Required: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Cost Driver Volume 6,400 pounds. 272 hours 62 setups 64 purchase orders 40 inquiries 256 labor-hours 3,360 square meters
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter7: Operating Assets
Section: Chapter Questions
Problem 41E
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