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Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,780,000. Information regarding resources for the month follows. Parts management Energy Quality inspections Long-term
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,780,000. Information regarding resources for the month follows. Parts management Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service Administrative Resources Used $ 60,000 104,000 85,000 45,000 37,000 137,000 310,000 120,000 136,000 18,000 112,000 Resources Supplied $ 72,000 104,000 103,000 71,000 51,000 230,000 310,000 230,000 156,000 37,000 148,000 In addition, Leidenheimer spent $55,000 on 50 engineering changes with a cost-driver rate of $1,100 and $59,200 on 8 outside contracts with a cost driver rate of $7,400. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Required A Required B Prepare a traditional income statement. Traditional Income Statement Total costs Required A Required B Prepare an activity-based income statement. Activity-Based Income Statement Unused Resources Used Resource Capacity Resources Supplied Costs Unit Batch Product and customer sustaining Capacity sustaining Total costs
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