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Please also give explanations on how you got each number, thanks! Problem 10-58 Activity-Based Reporting: Manufacturing (LO 10-4,5) Leidenheimer Corporation manufactures small airplane propellers. Sales
Please also give explanations on how you got each number, thanks!
Problem 10-58 Activity-Based Reporting: Manufacturing (LO 10-4,5) Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,700,000. Information regarding resources for the month follows: Parts management Energy Quality inspections Long-term labor Short-term labor Setups Materials Depreciation Marketing Customer service Administrative Resources Used $ 60,000 100,000 90,000 50,000 40,000 140,000 300,000 120,000 140,000 20,000 100,000 Resources Supplied $ 70,000 100,000 100,000 70,000 48,000 200,000 300,000 200,000 150,000 40,000 140,000 In addition, Leidenheimer spent $50,000 on 50 engineering changes with a cost-driver rate of $1,000, and $60,000 on eight 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. Traditional Income Statement Total costs b. Prepare an activity-based income statement. Activity-Based Income Statement Unused Resources Resource Used Capacity Resources Supplied Costs Unit $ 0 $ 0 $ Batch $ 0 $ 0 $ 0 Product and customer sustaining 0 $ 0 $ Capacity sustaining $ $ 0 0 $ $ 0 0 $ $ 0 0 Total costsStep by Step Solution
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