Leidenheimer Corporation manufactures small airplane propellers. Sales for year 2 totaled $1,620,000. Information regarding resources for the month follows.         Resources Used   Resources Supplied Parts management $ 58,000     $ 73,000   Energy   109,000       109,000   Quality inspections   94,000       103,000   Long-term labor   55,000       69,000   Short-term labor   39,000       58,000   Setups   143,000       220,000   Materials   320,000       320,000   Depreciation   120,000       220,000   Marketing   131,000       168,000   Customer service   24,000       41,000   Administrative   102,000       132,000     In addition, Leidenheimer spent $65,000 on 50 engineering changes with a cost-driver rate of $1,300 and $56,000 on 8 outside contracts with a cost driver rate of $7,000.   Required:    Management has requested that you do the following: a. Prepare a traditional income statement. b. Prepare an activity-based income statement. Please answer both a & b. Thanks

Dashboard Inc. manufactures and assembles automobile instrument panels for both eCar Motors and Greenville Motors. The process consists of a lean product cell for each customer’s instrument assembly. The data that follow concern only the eCar lean cell. For the year, Dashboard Inc. budgeted the following costs for the eCar production cell: Conversion Cost Categories Budget Labor $800,000 Supplies 275,000 Utilities 325,000 Total 1,400,000   Dashboard Inc. plans 2,000 hours of production for the eCar cell for the year. The materials cost is $240 per instrument assembly. Each assembly requires 24 minutes of cell assembly time. There was no April 1 inventory for either Raw and In Process Inventory or Finished Goods Inventory.  The following summary events took place in the eCar cell during April:  Electronic parts and wiring were purchased to produce 450 instrument assemblies in April.  Conversion costs were applied for the production of 400 units in…

Moira Company has just finished its first year of operations and must decide which method to use for adjusting cost of goods sold. Because the company used a budgeted indirect cost rate for its manufacturing operations, the amount that was allocated ($435,000) to cost of goods sold was different from the actual amount incurred ($425,000). Ending balances in the relevant accounts were: Work in Process $ 40,000 Finished Goods 80,000 Cost of Goods Sold 680,000 Required 1. Prepare a journal entry to write off the difference between allocated and actual overhead directly to Cost of Goods Sold Be sure your entry closes the related overhead accounts. 2. Prepart a journal entry that prorates the write-off of the difference between allocated and actual overhead using ending account balances. Be sure your journal entry closes the related overhead accounts.

Sagar