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Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,720,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management

Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,720,000. Information regarding resources for the month follows.

Resources Used Resources Supplied

Parts management $ 61,000 $ 71,000
Energy 108,000 108,000
Quality inspections 93,000 102,000
Long-term labor 52,000 73,000
Short-term labor 42,000 54,000
Setups 136,000 220,000
Materials 310,000 310,000
Depreciation 130,000 220,000
Marketing 145,000 165,000
Customer service 22,000 42,000
Administrative 114,000 140,000

n addition, Leidenheimer spent $63,000 on 45 engineering changes with a cost-driver rate of $1,400 and $58,400 on 8 outside contracts with a cost driver rate of $7,300.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.

Prepare a traditional income statement.

A.
Traditional Income Statement
Total costs

goes on the left columns the following options

  • Administrative
  • Customer service
  • Depreciation
  • Energy

Prepare an activity-based income statement.

Activity-Based Income Statement
Resources Used Unused Resource Capacity Resources Supplied
Costs
Unit
$0 $0 $0
Batch
$0 $0 $0
Product and customer sustaining
$0 $0 $0
Capacity sustaining
$0 $0 $0
Total costs $0 $0 $0 0
operating profit or operating loss $ 0

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