idenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,670,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 62,000 $ 74,000 Energy 102,000 102,000 Quality inspections 92,000 103,000 Long-term labor 49,000 73,000 Short-term labor 45,000 54,000 Setups 139,000 230,000 Materials 310,000 310,000 Depreciation 120,000 230,000 Marketing 142,000 162,000 Customer service 21,000 41,000 Administrative 115,000 135,000 In addition, Leidenheimer spent $75,000 on 50 engineering changes with a cost-driver rate of $1,500 and $60,000 on 8 outside contracts with a cost driver rate of $7,500.
idenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,670,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 62,000 $ 74,000 Energy 102,000 102,000 Quality inspections 92,000 103,000 Long-term labor 49,000 73,000 Short-term labor 45,000 54,000 Setups 139,000 230,000 Materials 310,000 310,000 Depreciation 120,000 230,000 Marketing 142,000 162,000 Customer service 21,000 41,000 Administrative 115,000 135,000 In addition, Leidenheimer spent $75,000 on 50 engineering changes with a cost-driver rate of $1,500 and $60,000 on 8 outside contracts with a cost driver rate of $7,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,670,000. Information regarding resources for the month follows.
| Resources Used | Resources Supplied | ||||||
| Parts management | $ | 62,000 | $ | 74,000 | |||
| Energy | 102,000 | 102,000 | |||||
| Quality inspections | 92,000 | 103,000 | |||||
| Long-term labor | 49,000 | 73,000 | |||||
| Short-term labor | 45,000 | 54,000 | |||||
| Setups | 139,000 | 230,000 | |||||
| Materials | 310,000 | 310,000 | |||||
| 120,000 | 230,000 | ||||||
| Marketing | 142,000 | 162,000 | |||||
| Customer service | 21,000 | 41,000 | |||||
| Administrative | 115,000 | 135,000 | |||||
In addition, Leidenheimer spent $75,000 on 50 engineering changes with a cost-driver rate of $1,500 and $60,000 on 8 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.
b. Prepare an activity-based income statement.
Prepare a traditional income statement.
|
|
|
B.
Prepare an activity-based income statement.
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