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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. Parts management Energy Quality inspections Long-term
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,720,000. 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 $ 60,000 103,000 87,000 53,000 45,000 138,000 300,000 130,000 149,000 23,000 110,000 Resources Supplied $ 73,000 103,000 103,000 69,000 56,000 220,000 300,000 220,000 167,000 40,000 142,000 In addition, Leidenheimer spent $60,000 on 50 engineering changes with a cost-driver rate of $1,200 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. Required A Required B 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 costsStep by Step Solution
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