Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,610,000. Information regarding resources for the month follows.

	Resources Used				Resources Supplied
Parts management	$	65,000			$	74,000
Energy		107,000				107,000
Quality inspections		87,000				101,000
Long-term labor		45,000				72,000
Short-term labor		40,000				59,000
Setups		142,000				210,000
Materials		300,000				300,000
Depreciation		120,000				210,000
Marketing		140,000				166,000
Customer service		23,000				42,000
Administrative		112,000				140,000

In addition, Leidenheimer spent $63,000 on 45 engineering changes with a cost-driver rate of $1,400 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.