16 Pepper's Products manufactures and sells two types of chew toys for pets--Squeaky and Silent. In May, Pepper's Products had the following costs and revenues Pepper's Producte Income Statement For the month of May Squeaky Silent $149,000 $150,000 20,000 19.000 80,000 20,000 Total $299,000 39,000 100.000 Sales revenue Direct materials Direct labor Overhead costs Administration Production setup Ook Quality control 20.000 56,000 20,800 21.000 Distribution Operating profit $ 42,200 Pepper's Products currently uses labor costs to allocate all overhead but is considering implementing an activity-based costing After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct lab costs but to use the following bases to allocate the remaining overhead. Activity Setting up Performing quality control Distribution Cost Driver Number of production runs Number of inspections Number of units shipped Activity Level Squeaky Slent 10 18 40 40 90,000 120,000 Required: a. Complete the income statement using the preceding activity bases. c. Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. Complete this question by entering your answers in the tabs below. Required a Required C equired A your answers in the tabs below. or costs a: Print Required C Complete the income statement using the preceding activity bases. (Do not round intern amounts as positive values.) References Account Sales revenue Direct materials Direct labor Overhead costs: Squeaky $ 149,000 $ 20,000 Silent Administration 150,000 Total 80,000 $ 19,000 Setting up Performing quality control Distribution 20,000 299,000 39,000 100,000 Total overhead costs Operating profit (loss) 20,000 56,000 20,800 21,000 Required A Required C > Statement using the preceding activity bases. ome statement for Pepper's Products using direct labor costs as the only to shipped ons ns Complete this question by entering your answers in the tabs below. Print squeaky 10 40 90,000 Required A References 120,0 Restate the income statement for Pepper's Products using direct labor costs as the only overhead alloc round intermediate calculations. Input all amounts as positive values.) Required Sales revenue Direct materials Account Direct labor Overhead costs Operating profit (loss) Squeaky $ 149,000 $ 20,000 Silent 80,000 Total 150,000 $ 19,000 20,000 299,000 39,000 100,000