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Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,630,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,630,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management Energy Quality inspections $ 61,000 $ 69,000 104,000 85,000 Long-term labor 46,000 104,000 104,000 68,000 Short-term labor 36,000 55,000 Setups 136,000 230,000 Materials 320,000 320,000 Depreciation 120,000 230,000 Marketing 142,000 168,000 Customer service 23,000 39,000 Administrative 110,000 142,000 In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $60,800 on 8 outside contracts with a cost driver rate of $7,600. 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 Costs Unit Batch Resources Used Unused Resource Resources Supplied Capacity Product and customer sustaining Capacity sustaining Total costs < Required A Required B >
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