Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,610,000. Information regarding resources for the month follows.

	Resources Used				Resources Supplied
Parts management	$	56,000			$	73,000
Energy		109,000				109,000
Quality inspections		89,000				108,000
Long-term labor		50,000				71,000
Short-term labor		38,000				55,000
Setups		143,000				210,000
Materials		310,000				310,000
Depreciation		120,000				210,000
Marketing		132,000				157,000
Customer service		22,000				42,000
Administrative		106,000				148,000

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 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