Pepper's Products manufactures and sells two types of chew toys for pets-Squeaky and Silent. In May, Pepper's Products had the following costs and revenues. Pepper's Products Income Statement For the Month of May Squeaky Silent $134,000 $152,000 21,000 21,000 8 , 20,000 Total $286,000 42,000 100,000 Sales revenue Direct materials Direct labor Overhead costs Administration Production setup Quality control Distribution Operating profit 5 20,000 , 14,400 21 , $ 28,600 Pepper's Products currently uses labor costs to allocate all overhead but is considering implementing an activity-based costing system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining overhead. Activity Setting up Performing quality control Distribution Cost Driver Number of production runs Number of inspections Number of units shipped Activity Level Squeaky Silent 10 20 30 30 90, eee 120.eee Required: a. Complete the income statement using the preceding activity bases c. Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. Complete this question by entering your answers in the tabs below. Required: a. Complete the income statement using the preceding activity bases. c. Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. Complete this question by entering your answers in the tabs below. Required A Required Complete the income statement using the preceding activity bases. (Do not round intermediate amounts as positive values.) Account Total Sales revenue Squeaky $ 134,000 $ 21.000 80,000 Silent 152,000 $ 21,000 20.000 Direct materials 286,000 42,000 100.000 Direct labor Overhead costs: Administration Setting up Performing quality control Distribution Total overhead costs Operating profit (loss) 20,000 60,000 14.400 21.000 Requeda Required C > Required: a. Complete the income statement using the preceding activity bases. c. Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. Complete this question by entering your answers in the tabs below. Required A Required Restate the income statement for Pepper's Products using direct labor costs as the only overhear round intermediate calculations. Input all amounts as positive values.) Account Sales revenue Direct materials Direct labor Squeaky $ 134,000 $ 21,000 80,000 Silent 152,000 $ 21,000 20,000 Total 286,000 42,000 100,000 Overhead costs Operating profit (loss)