Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,640,000. Information regarding resources for the month follows:

	Resources Used		Resources Supplied
Parts management	$	60,000			$	72,000
Energy		104,000				104,000
Quality inspections		89,000				110,000
Long-term labor		47,000				74,000
Short-term labor		45,000				55,000
Setups		135,000				230,000
Materials		320,000				320,000
Depreciation		130,000				230,000
Marketing		134,000				158,000
Customer service		21,000				37,000
Administrative		117,000				142,000

In addition, Leidenheimer spent $65,000 on 50 engineering changes with a cost-driver rate of $1,300 and $61,600 on 8 outside contracts with a cost driver rate of $7,700.

Required:

Management has requested that you do the following:

a.Prepare a traditional income statement.

b.Prepare an activity-based income statement.