Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,680,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 63,000 $ 71,000 Energy 107,000 107,000 Quality inspections 86,000 102,000 Long-term labor 53,000 67,000 Short-term labor 43,000 52,000 Setups 139,000 210,000 Materials 320,000 320,000 Depreciation 120,000 210,000 Marketing 149,000 168,000 Customer service 21,000 35,000 Administrative 111,000 148,000 In addition, Leidenheimer spent $36,000 on 45 engineering changes with a cost-driver rate of $800 and $63,200 on 8 outside contracts with a cost driver rate of $7,900. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.

Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,680,000. Information regarding resources for the month follows. Parts management Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service Administrative Resources Used $ 63,000 107,000 86,000 53,000 43,000 139,000 320,000 120,000 149,000 21,000 111,000 Resources Supplied $ 71,000 107,000 102,000 67,000 52,000 210,000 320,000 210,000 168,000 35,000 148,000 In addition, Leidenheimer spent $36,000 on 45 engineering changes with a cost-driver rate of $800 and $63,200 on 8 outside contracts with a cost driver rate of $7,900. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Required A Required B Prepare a traditional income statement. Traditional Income Statement Total costs Required A Required B > Required A Required B Prepare an activity-based income statement. Activity-Based Income Statement Unused Resources Resource Used Capacity Resources Supplied Costs Unit Batch Product and customer sustaining Capacity sustaining Total costs