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Peppers Products manufactures and sells two types of chew toys for petsSqueaky and Silent. In May, Peppers Products had the following costs and revenues.

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. 10 points Pepper's Products Income Statement For the Month of May Squeaky Silent $145, eee $154,000 21, eee 21, eee 70,000 30,000 Total $299,000 42,000 100,000 eBook Sales revenue Direct materials Direct labor Overhead costs Administration Production setup Quality control Distribution Operating profit Print 20,000 60,000 15,000 20, een $ 42,000 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 20 30 30 80, eee 120, een 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.)