Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $880,000. Information regarding resources for the year follows:

	Resources Used			Resources Supplied
Parts management	$	30,000		$	34,000
Energy		53,000			53,000
Quality inspections		42,000			48,000
Long-term labor		24,000			38,000
Short-term labor		19,000			23,000
Setups		75,000			110,000
Materials		130,000			130,000
Depreciation		62,000			110,000
Marketing		68,000			74,000
Customer service		9,000			20,000
Administrative		47,000			56,000

In addition, Leidenheimer spent $40,500 on 45 engineering changes with a cost-driver rate of $900 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. (Input all values as positive numbers.)

(b)	Prepare an activity-based income statement. (Input all values as positive numbers.)

(c)

Which income statement provides useful information to managers?

	Traditional income statement
	Activity-based income statement