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