Problem 10-64 (Algo) Activity-Based Reporting: Manufacturing (LO 10-4, 5) Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 59,000 $ 75,000 Energy 101,000 101,000 Quality inspections 93,000 103,000 Long-term labor 46,000 71,000 Short-term labor 37,000 52,000 Setups 144,000 220,000 Materials 320,000 320,000 Depreciation 110,000 220,000 Marketing 145,000 170,000 Customer service 25,000 44,000 Administrative 119,000 132,000 In addition, Leidenheimer spent $58,500 on 45 engineering changes with a cost-driver rate of $1,300 and $61,600 on 8 outside contracts with a cost driver rate of $7,700. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Problem 10-64 (Algo) Activity-Based Reporting: Manufacturing (LO 10-4, 5) Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding resources for the month follows. Resources Used Resources Supplied Parts management $ 59,000 $ 75,000 Energy 101,000 101,000 Quality inspections 93,000 103,000 Long-term labor 46,000 71,000 Short-term labor 37,000 52,000 Setups 144,000 220,000 Materials 320,000 320,000 Depreciation 110,000 220,000 Marketing 145,000 170,000 Customer service 25,000 44,000 Administrative 119,000 132,000 In addition, Leidenheimer spent $58,500 on 45 engineering changes with a cost-driver rate of $1,300 and $61,600 on 8 outside contracts with a cost driver rate of $7,700. Required: Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 10-64 (Algo) Activity-Based Reporting: Manufacturing (LO 10-4, 5)
Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding resources for the month follows.
| Resources Used | Resources Supplied | ||||||
| Parts management | $ | 59,000 | $ | 75,000 | |||
| Energy | 101,000 | 101,000 | |||||
| Quality inspections | 93,000 | 103,000 | |||||
| Long-term labor | 46,000 | 71,000 | |||||
| Short-term labor | 37,000 | 52,000 | |||||
| Setups | 144,000 | 220,000 | |||||
| Materials | 320,000 | 320,000 | |||||
| 110,000 | 220,000 | ||||||
| Marketing | 145,000 | 170,000 | |||||
| Customer service | 25,000 | 44,000 | |||||
| Administrative | 119,000 | 132,000 | |||||
In addition, Leidenheimer spent $58,500 on 45 engineering changes with a cost-driver rate of $1,300 and $61,600 on 8 outside contracts with a cost driver rate of $7,700.
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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