Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,780,000. Information regarding resources...
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Accounting
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,780,000. Information regarding resources for the month follows.
Resources Used
Resources Supplied
Parts management
$
60,000
$
71,000
Energy
102,000
102,000
Quality inspections
95,000
109,000
Long-term labor
53,000
70,000
Short-term labor
41,000
52,000
Setups
145,000
210,000
Materials
320,000
320,000
Depreciation
130,000
210,000
Marketing
142,000
155,000
Customer service
17,000
36,000
Administrative
120,000
149,000
In addition, Leidenheimer spent $45,000 on 50 engineering changes with a cost-driver rate of $900 and $56,800 on 8 outside contracts with a cost driver rate of $7,100.
Required:
Management has requested that you do the following:
a. Prepare a traditional income statement.
b. Prepare an activity-based income statement.
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