Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,740,000. Information regarding resources for the month follows.

	Resources Used				Resources Supplied
Parts management	$	63,000			$	69,000
Energy		109,000				109,000
Quality inspections		90,000				107,000
Long-term labor		52,000				75,000
Short-term labor		44,000				58,000
Setups		138,000				210,000
Materials		320,000				320,000
Depreciation		120,000				210,000
Marketing		136,000				168,000
Customer service		17,000				39,000
Administrative		116,000				148,000

In addition, Leidenheimer spent $49,500 on 45 engineering changes with a cost-driver rate of $1,100 and $60,000 on 8 outside contracts with a cost driver rate of $7,500.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.