Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,770,000. Information regarding resources for the month follows:

	Resources Used				Resources Supplied
Parts management	$	56,000			$	73,000
Energy		108,000				108,000
Quality inspections		93,000				109,000
Long-term labor		46,000				74,000
Short-term labor		43,000				52,000
Setups		137,000				200,000
Materials		300,000				300,000
Depreciation		120,000				200,000
Marketing		146,000				162,000
Customer service		19,000				44,000
Administrative		113,000				132,000

In addition, Leidenheimer spent $63,000 on 45 engineering changes with a cost-driver rate of $1,400 and $63,200 on 8 outside contracts with a cost driver rate of $7,900.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.