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Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,730,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parta
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,730,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parta management Energy Quality inspections $ 62,000 106,000 $ 69,000 106,000 95,000 Long-term labor 52,000 108,000 70,000 Short-term labor 42,000 59,000 Setups 137,000 200,000 Materials 310,000 310,000 Depreciation 110,000 200,000 Marketing 134,000 169,000 Customer service 17,000 41,000 Administrative 120,000 131,000 In addition, Leidenheimer spent $58,500 on 45 engineering changes with a cost-driver rate of $1,300 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.
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