Activity-Based Income Statement Resources Unused Used Resource Capacity Resources Supplied Sales revenue $ 1,670,000 Costs $ 17,000 0 Unit Parts management Energy Short-term labor Materials Outside contracts 58,000 $ 109,000 39,000 320,000 63,200 18,000 0 0 $ 589,200 $ 35,000 $ Batch Quality inspections Setups $ 93,000 $ 138,000 12,000 72,000 $ 231,000 $ 84,000 $ Product and customer sustaining Marketing Customer service Engineering changes 135,000 $ 25,000 67,500 31,000 10,000 0 $ 227,500 $ 41,000 $ 0 $ Capacity sustaining Long-term labor Depreciation Administrative 48,000 $ 110,000 106,000 21,000 100,000 31,000 0 $ 264,000 $ $ 1,311,700 $ 152,000 312,000 $ 0 0 Total costs Operating profit $ 1,670,000 Parts management Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service Administrative Resources Used $ 58,000 109,000 93,000 48,000 39,000 138,000 320,000 110,000 135,000 25,000 106,000 Resources Supplled $ 75,000 109,000 105,000 69,000 57,000 210,000 320,000 210,000 166,000 35,000 137,000 In addition, Leidenheimer spent $67,500 on 45 engineering changes with a cost-driver rate of $1,500 and $63,200 on 8 outside contracts with a cost driver rate of $7.900 Required: Management has requested that you do the following: a. Prepare a traditional income statement b. Prepare an activity based income statement