Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,800,000. Information regarding resources for the month follows.

Resources Used Resources Supplied Parts management $ 63,000 $ 74,000 Energy 103,000 103,000 Quality inspections 91,000 100,000 Long-term labor 46,000 75,000 Short-term labor 40,000 56,000 Setups 142,000 220,000 Materials 320,000 320,000 Depreciation 120,000 220,000 Marketing 136,000 168,000 Customer service 24,000 35,000 Administrative 112,000 136,000

In addition, Leidenheimer spent $45,000 on 45 engineering changes with a cost-driver rate of $1,000 and $57,600 on 8 outside contracts with a cost driver rate of $7,200.

Management has requested that you do the following:

a. create a traditional income statement.

b. create an activity-based income statement.