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Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage:   Cost Driver Rate Cost Driver Volume Resources used         Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied         Operation $ 35,400       Administration $ 62,400       Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below.   Required A Required B Prepare a traditional income statement.         Traditional Income Statement Sales revenue     Operation costs     Administration costs     Operating profit               Activity-Based Income Statement   Resources Used Unused Resource Capacity Resources Supplied   Sales revenue         Costs         Volume related - Operation         Batch related - Administration         Total costs         Operating profits

Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage:   Cost Driver Rate Cost Driver Volume Resources used         Operation $ 0.55 per mile 46,200 miles Administration 25.00 per trip 1,874 trips Resources supplied         Operation $ 35,400       Administration $ 62,400       Sales revenue totaled $80,000. Required: Prepare a traditional income statement. Prepare an activity-based income statement. Complete this question by entering your answers in the tabs below.   Required A Required B Prepare a traditional income statement.         Traditional Income Statement Sales revenue     Operation costs     Administration costs     Operating profit               Activity-Based Income Statement   Resources Used Unused Resource Capacity Resources Supplied   Sales revenue         Costs         Volume related - Operation         Batch related - Administration         Total costs         Operating profits

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Boston Home Center (BHC) offers customers the use of a truck at $64 per trip to take purchased merchandise home. BHC reports the following information about the trucks it has for customer usage:

  Cost Driver Rate Cost Driver Volume
Resources used        
Operation $ 0.55 per mile 46,200 miles
Administration 25.00 per trip 1,874 trips
Resources supplied        
Operation $ 35,400      
Administration $ 62,400      

Sales revenue totaled $80,000.

Required:

  1. Prepare a traditional income statement.
  2. Prepare an activity-based income statement.

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

     
    • Required A
    • Required B

    Prepare a traditional income statement.

     
     
     
     
    Traditional Income Statement
    Sales revenue    
    Operation costs    
    Administration costs    
    Operating profit    
     
    •  
       
       
       
      Activity-Based Income Statement
        Resources Used Unused Resource Capacity Resources Supplied  
      Sales revenue        
      Costs        
      Volume related - Operation        
      Batch related - Administration        
      Total costs        
      Operating profits        
       
      •  
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