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	$	56,000			$	70,000
Energy		108,000				108,000
Quality inspections		91,000				106,000
Long-term labor		49,000				69,000
Short-term labor		37,000				54,000
Setups		142,000				210,000
Materials		330,000				330,000
Depreciation		120,000				210,000
Marketing		144,000				165,000
Customer service		19,000				37,000
Administrative		120,000				138,000

In addition, Leidenheimer spent $70,000 on 50 engineering changes with a cost-driver rate of $1,400 and $60,800 on 8 outside contracts with a cost driver rate of $7,600.

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 Resources Unused Used Resource Capacity Resources Supplied Costs Unit Batch Product and customer sustaining Capacity sustaining Total costs