Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,780,000. Information regarding resources for the month follows.

	Resources Used				Resources Supplied
Parts management	$	60,000			$	71,000
Energy		102,000				102,000
Quality inspections		95,000				109,000
Long-term labor		53,000				70,000
Short-term labor		41,000				52,000
Setups		145,000				210,000
Materials		320,000				320,000
Depreciation		130,000				210,000
Marketing		142,000				155,000
Customer service		17,000				36,000
Administrative		120,000				149,000

In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $56,800 on 8 outside contracts with a cost driver rate of $7,100.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.