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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
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 Energy Quality inspections $ 64,000 103,000 $ 74,000 103,000 92,000 107,000 Long-term labor 53,000 74,000 Short-term labor 37,000 58,000 Setups 144,000 230,000 Materials 330,000 330,000 Depreciation 130,000 230,000 Marketing 136,000 165,000 Customer service 23,000 41,000 Administrative 115,000 136,000 In addition, Leidenheimer spent $70,000 on 50 engineering changes with a cost-driver rate of $1.400 and $59,200 on 8 outside contracts with a cost driver rate of $7.400 Required: Management has requested that you do the following a. Prepare a traditional income statement b. Prepare an activity-based income statement
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