Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 74,000 101,000
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 74,000 101,000 110,000 73,000 50,000 200,000 330,000 200,000 166,000 43,000 143,000 Parts management $ 64,000 101,000 91,000 49,000 40,000 135,000 330,000 120,000 139,000 25,000 107,000 Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service Administrative In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $57,600 on 8 outside contracts with a cost driver rate of $7,200. Required Management has requested that you do the following: a. Prepare a traditional income statement. Traditional Income Statement $ 1,690,000 Sales revenue Parts $74,000 management Energy Quality inspections Long-term labor 101,000 110,000 73,000 Short-term labor 50,000 Setups Materials Depreciation Marketing Customer service 200,000 330,000 200,000 166,000 43,000 143,000 Administrative Engineering changes Outside contracts 45,000 57,600 1,592,600 $ 97,400 Total costs Operating profit b. Prepare an activity-based income statement b. Prepare an activity-based income statement. Activity-Based Income Statement Unused Resources Resource Supplied Resources Used acity Costs Unit 0$ 0$ 0 Batch 0 $ 0 $ 0 Product and customer sustaining O$ $ 0 Capacity sustaining 0$ 0$ 0 $ Total costs 0 $ 0 LA GA
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started