Check my wc 5 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. 14.28 points Pepper's Products Income Statement For the Month of May Squeaky Silent $146,000 $168,000 20,000 21,000 80,000 20,000 Skipped Total $314,000 41,000 100,000 Sales revenue Direct materials Direct labor Overhead costs Administration Production setup Quality control Distribution Operating profit eBook 20,000 56,000 20,800 19,000 $ 57,200 Print References Pepper's Products currently uses labor costs to allocate all overhead but is considering implementing an activity-based costing system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor 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 Silent 10 18 40 40 80,000 110,000 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 Complete the income statement using the preceding activity bases. (Do not round intermediate calculations. Input all amounts as positive values.) Account Squeaky Silent Total Sales revenue $ 146,000 $ 168,000 $ 314,000 Direct materials 20,000 21,000 41,000 Direct labor 80,000 20,000 100,000 Overhead costs: Administration 20,000 Setting up 56,000 Performing quality control 20,800 Distribution 19,000 Total overhead costs 0 Operating profit (loss) $ 46,000 $ 127,000 173,000 $ Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. (Do not round intermediate calculations. Input all amounts as positive values.) Account Squeaky Silent Total Sales revenue $ 146,000 $ 168,000 $ 314,000 Direct materials 20,000 21,000 41,000 Direct labor 80,000 20,000 100,000 Overhead costs 0 Operating profit (loss) 46,000 $ 127,000 $ 173,000 $