Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,770,000. Information regarding resources for the month follows.

Resources Used Resources Supplied Parts management $ 58,000 $ 68,000 Energy 109,000 109,000 Quality inspections 89,000 109,000 Long-term labor 54,000 72,000 Short-term labor 36,000 60,000 Setups 135,000 200,000 Materials 300,000 300,000 Depreciation 120,000 200,000 Marketing 134,000 170,000 Customer service 25,000 43,000 Administrative 115,000 137,000

In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $56,800 on 8 outside contracts with a cost driver rate of $7,100.

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. Traditional Income Statement Total costs Prepare an activity-based income statement. Activity-Based Income Statement Resources Unused Used Resource Capacity Resources Supplied Costs Unit Batch Product and customer sustaining Capacity sustaining Total costs