Normandy Office Products $($NOP$)$ makes two types of office desks. Manager and Executlve. The Executive model is adjustable using electric motors and is made with upgraded materlals. The manufacturing process for the Executlive model is more complex than that for the Manager model, requiring more frequent inspections and shorter production runs. The Manager model is a basic desk, using good, but easy to work with, materlals, and is simpler to manufacture. NOP's results for the last fiscal year are shown in the following statement.

NOP currently uses labor costs to allocate all overhead, but management is considering implementing an activity$-$based costing system. After interviewing the sales and productlon staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining costs:

$\backslash$table$[[$Activity$,$Cost Driver,Manager:,Execulive$],[$Machine setup,Number of production runs,$200,106],[$Irispection$,$Number of Inspectlons,$200,400],[$Packing and stippin,Number of units shipped,$12,600,3,600]]$

Required:

a$.$ Prepare the product line income statement using the proposed activity bases.

c$.$ Restate the product line income statement for Normandy Office Products using direct labor costs as the only overhead allocation base

Complete this question by entering your answers in the tabs below.

Required $A$

Requitred $C$

Prepare the product line income statement using the proposed activity bases.

Note: Do not round intermeciate calculasions: Input all amounts as positive values

$\backslash$table$[[$Account$,$Manager,Executive,Total$]]$