300,000$
98,000$
17,880
24,000
21,000
15,600
29,000
28,000
233,480
66,520$
Correct!
300,000$
Unused
Resources Resource Resources
Used Capacity Supplied
96,000$ 2,000$ 98,000$
16,320 1,560 17,880
112,320$ 3,560$ 115,880$
Batch
Product and customer sustaining
Setups
Purchasing
Total costs
Operating profit
Customer service
Capacity sustaining
Administrative
Correct!
Problem 10-56
CARBON COMPANY
Part a.
Sales revenue
Materials
Energy
Setups
Purchasing
Customer service
Long-term labor
Administrative
Total costs
Part b.
Operating profit
Sales revenue
Costs
Unit
Materials
Energy
Unused
Resources
Capacity
2,000$ 8,000
1,560 340
– 80
1,800 80
7,600 50
3,400 320
2,800 420
Resources supplied:
Sales for the period
Materials
Energy
Setups
Purchasing
Customer service
Long-term labor
Administrative
Cost
Driver
Volume
CARBON COMPANY
Given Data P10-56:
Resources used:
Materials
Energy
Setups
Purchasing
Customer service
Long-term labor
Administrative
pounds
machine-hours
setups
purchase orders
returns
labor-hours
labor-hours
1,350,000$
120,000
89,500
54,000
85,500
310,000
425,000
79,000
42,000
1,205,000
145,000$
Correct!
1,350,000$
Unused
Resources Resource Resources
Used Capacity Supplied
80,000$ 5,500$ 85,500$
225,000 85,000 310,000
305,000$ 90,500$ 395,500$
Correct! Correct! Correct!
37,500$ 4,500$ 42,000$
Capacity sustaining
Depreciation
Product and customer sustaining
Marketing
Training personnel
Long-term labor
Administrative
Total costs
Operating profit
Correct!
Problem 10-57
Part a. Prepare a traditional income statement.
Sales revenue
Marketing
Depreciation
Training personnel
Energy
Costs
Unit
Short-term labor
Long-term labor
Administration
Repair verifications
Operating profit
Total costs
Part b. Prepare an activity-based income statement.
Sales revenue
Energy
Short-term labor
Batch
Repair verifications
Resources Resources
Used Supplied
112,000$ 120,000$
87,000 89,500
45,000 54,000
80,000 85,500
225,000 310,000
415,000 425,000
70,000 79,000
Additional Information:
Repair verifications
Number of verifications
Verification cost driver rate
Sales for year 1
ALLCOTT COMPUTER SERVICES
Given Data P10-57:
Year 1 Resource Information:
Marketing
Depreciation
Training personnel
Energy
Short-term labor
Long-term labor
Administrative
1,700,000$
70,000$
100,000
100,000
70,000
48,000
200,000
300,000
200,000
150,000
Customer service
Administrative
Engineering changes
Outside contracts
Operating profit
Total costs
Correct!
1,700,000$
Unused
Resources Resource Resources
Used Capacity Supplied
60,000$ 10,000$ 70,000$
100,000 – 100,000
40,000 8,000 48,000
300,000 – 300,000
60,000 – 60,000
Batch
Quality inspections
Setups
Marketing
Customer service
Product and customer sustaining
Engineering changes
Capacity sustaining
Long-term labor
Depreciation
Administrative
Problem 10-64
LEIDENHEIMER CORPORATION
Part b. Prepare an activity-based income statement.
Part a. Prepare a traditional income statement.
Sales revenue
Parts management
Energy
Quality inspections
Long-term labor
Short-term labor
Setups
Materials
Depreciation
Marketing
Sales revenue
Costs:
Unit:
Parts management
Energy
Short-term labor
Materials
Outside contracts
270,000$ 140,000$ 410,000$
1,270,000$ 258,000$ 1,528,000$ 1,528,000
172,000$
Correct!
Total costs
Operating profit
Resources Resources
Used Supplied
60,000$ 70,000$
100,000 100,000
90,000 100,000
50,000 70,000
40,000 48,000
140,000 200,000
300,000 300,000
120,000 200,000
140,000 150,000
20,000 40,000
100,000 140,000
Number of contracts
Cost driver rate
Spent on engineering changes
Number of changes
Cost driver rate
Spent on outside contracts
Year 2 sales
Marketing
Parts management
Energy
Quality inspections
LEIDENHEIMER CORPORATION
Given Data P10-64:
Long-term labor
Customer service
Administrative
Short-term labor
Setups
Materials
Depreciation