Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,710,000. Information regarding resources for the month follows.

	Resources Used				Resources Supplied
Parts management	$	65,000			$	71,000
Energy		101,000				101,000
Quality inspections		91,000				101,000
Long-term labor		49,000				70,000
Short-term labor		41,000				51,000
Setups		145,000				230,000
Materials		300,000				300,000
Depreciation		130,000				230,000
Marketing		133,000				168,000
Customer service		22,000				43,000
Administrative		119,000				139,000

In addition, Leidenheimer spent $63,000 on 45 engineering changes with a cost-driver rate of $1,400 and $59,200 on 8 outside contracts with a cost driver rate of $7,400.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.