I am hoping to fill out the following income statement by allocating costs with different cost drivers. I am not understanding it exactly. Hope for guidance and direction.

Pickle Motorcycles, Inc. (PMI), manufactures three motorcycle models: a cruising bike (Route 66), a street bike (Main Street), and a starter model (Alley Cat). Because of the different materials used, production processes for each model differ significantly in terms of machine types and time requirements Once parts are produced. however, assembly time per unit required for each type of bike is similar. For this reason, PMI allocates overhead on the basis of machinehours. Last year, the company shipped 900 Route 665, 2,200 Main Streets, and 4,600 Alley Cats and had the following revenues and expenses. PICKLE MOTORCYCLES, INC. Income Statement Route 66 Main Street Alley Cat Total Sales revenue $7,300,000 $11,200,000 $9,600,000 $ 28,100,000 Direct costs Direct materials 2,900,000 4,400,000 3,600,000 10,900,000 Direct labor 230,000 474,000 1,030,000 1,734,000 Variable overhead Machine setup 450,000 Order processing 1,280,000 Warehousing costs 1,906,500 Energy to run machines 630,000 Shipping 700,000 Contribution margin $10,449,500 Fixed overhead Plant administration 1,690,000 Other fixed overhead 2,350,000 Gross profit $ 5,909,500 PMl's chief financial officer (CFO) hired a consultant to recommend cost allocation bases. The consultant recommended the following. Activity Level Activity Cost Driver Route 66 Main Street Alley Cat Setting up machines Number of production runs 25 30 45 Processing orders Number of sales orders received 400 600 600 Warehousing Number of units held in inventory 220 200 400 Using energy Machine-hours 8,000 14,000 20,000 Shipping Number of units shipped 900 4,100 9,000 The consultant found no basis for allocating the plant administration and other fixed overhead costs and recommended that these not be applied to products. Required: a. Using machinehours to allocate production overhead, complete the income statement for Pickle Motorcycles. (See the \"using energy" activity for machine-hours.) Do not attempt to allocate plant administration or other fixed overhead. b. Complete the income statement using the bases recommended by the consultant. c. How might activity-based costing result in better decisions by Pickle Motorcycles's management? Complete this question by entering your answers in the tabs below. Required A Required B Required C Using machine-hours to allocate production overhead, complete the income statement for Pickle Motorcycles. (See the "using energy" activity for machine-hours.) Do not attempt to allocate plant administration or other xed overhead. (Round your variable overhead rate to 2 decimal places and your nal answers to the nearest whole dollar amount. Input all amounts as positive values.) Show lessA Sales revenue $ 7,300,000 $ 11,200,000 $ 9,600,000 $ 28,100,000 Direct costs: Direct material 2,900,000 4,400,000 3,600,000 10,900,000 Direct labor 280,000 474,000 1,030,000 1,784,000 Contribution margin 35 4,120,000 $ 6,326,000 $ 4,970,000 $ 15,416,000 Fixed overhead: Plant administration 1,690,000 Other xed overhead 2,850,000 Gross prot $ 5,909,500 Required B > Required: a. Using machine-hours to allocate production overhead, complete the income statement for Pickle Motorcycles. (See the \"using energy" activity for machine-hours.) Do not attempt to allocate plant administration or other fixed overhead. b. Complete the income statement using the bases recommended by the consultant. c. How might activity-based costing result in better decisions by Pickle Motorcycles's management? Complete this question by entering your answers in the tabs below. Required A Required B Required C Complete the income statement using the bases recommended by the consultant. (Do not round intermediate calculations. Input all amounts as positive values.) Sales revenue $ 7,300,000 $ 11,200,000 $ 9,600,000 $ 28,100,000 Direct costs: Direct material 2,900,000 4,400,000 3,600,000 10,900,000 Direct labor 280,000 474,000 1,030,000 1,784,000 Variable overhead: 450,000 1,280,000 1,906,500 630,000 700,000 Machine setup Order processing Warehousing costs Energy to run machines Shipping Contribution margin Fixed overhead: Plant administration 1,690,000 Other xed overhead 2,850,000 Gross prot $ 5,909,500