Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,690,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management Energy Quality inspections $ 56,000 108,000 $ 68,000 108,000 85,000 102,000 Long term labor 48,000 67,000 Short-term labor 37,000 54,000 Setups 139,000 200,000 Materials 310,000 310,000 Depreciation 120,000 200,000 Marketing 135,000 167,000 Customer service 16,000 45,000 Administrative 109,000 146,000 In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $60,000 on 8 outside contracts with a cost driver rate of $7,500. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.