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 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. 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