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Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management Energy Quality inspections $ 58,000 $ 69,000 100,000 100,000 91,000 110,000 Long-term labor 49,000 66,000 Short-term labor 39,000 59,000 Setups 141,000 200,000 Materials 330,000 330,000 Depreciation 130,000 200,000 Marketing 142,000 163,000 Customer service 22,000 39,000 Administrative 110,000 131,000 In addition, Leidenheimer spent $45,000 on 45 engineering changes with a cost-driver rate of $1,000 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. b. Prepare an activity-based income statement.
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