MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 11,000 units of M3100, 16,500 units of M4100, and 8,000 units of M6100 and had the following revenues and costs: MTI Income Statement M3100 M4100 $ 8,900,000 $ 14,800,000 M6100 $ 12,600,000 Total $36,300,000 2,800,000 600,000 4,900,000 890,000 3,500, eee 1,880,000 11,200,000 3,370,000 Sales revenue Direct costs Direct materials Direct labor Variable overhead Setting up machines Processing sales orders Warehousing Operating machines Shipping Contribution margin Plant administration Gross profit 2,601,000 1,760,000 2,065,000 1,150, eee 816,500 $ 13,337,500 6,300,000 $ 7,037,500 MTI's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following. Activity Setting up machines Processing sales orders Warehousing Operating machines Shipping Cost Driver Production runs Sales orders received Units held in inventory Machine-hours Units shipped M3100 9 180 80 6,300 8,000 M4100 21 380 180 9,300 16,500 M6100 21 240 90 9,400 11,000 The employee team recommends that plant administration costs not be allocated to products. Required: a. Using machine-hours to allocate overhead, complete the income statement for MTI. Do not allocate plant administrative costs to products b-1. Compute the cost driver rates. b-2. Complete the income statement using the activity-based costing method suggested by the employee team. Complete this question by entering your answers in the tabs below