Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,710,000. Information regarding resources for...

Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,710,000. Information regarding resources for the month follows.

	Resources Used		Resources Supplied
Parts management	$	65,000	$	71,000
Energy		101,000		101,000
Quality inspections		91,000		101,000
Long-term labor		49,000		70,000
Short-term labor		41,000		51,000
Setups		145,000		230,000
Materials		300,000		300,000
Depreciation		130,000		230,000
Marketing		133,000		168,000
Customer service		22,000		43,000
Administrative		119,000		139,000

In addition, Leidenheimer spent $63,000 on 45 engineering changes with a cost-driver rate of $1,400 and $59,200 on 8 outside contracts with a cost driver rate of $7,400.

Required:

Management has requested that you do the following:

a. Prepare a traditional income statement.

b. Prepare an activity-based income statement.

Expert Solution

ekkarill92 answered 6 months ago

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