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 XXXXXXXXXXAlgo) Activity-Based Reporting: Manufacturing (LO 10-4, 5) Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding...

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.

Jun 10, 2022

SOLUTION.PDF

Problem XXXXXXXXXXAlgo) Activity-Based Reporting: Manufacturing (LO 10-4, 5) Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,650,000. Information regarding...

Problem 10-64 (Algo) Activity-Based Reporting: Manufacturing (LO 10-4, 5)

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