Problem 9-59 (Static) Adopting on Activity-Bosed Costing System (LO 9-3, 5, 6) Ells Equipment (EE), manufactures three models of lawn tractor. EE-1000, EE-1800, and EE-2800. Because of the different materlals used, productoon processes for each model differ significantly in terms of machine types and time requirements, Once parts are produced, however, assembly time per unit required for each type of tractor is similat. For this reason, EE allocates overhead on the basis of machine-hours, Last quarte, the company shipped 8,000 EE-1000s, 3,200 EE-1800s, and 800EE2800s. The revenues and expenses for the last quaner were as follows: The plart manager abked the plant controller about the possiblity of adopting ABC. After consulting with the production supervisors in the plant the controller recontanended the following The controter also recomarpended tbot faciny odministration and misceltaneous fixed overhead costs not be applied to products. espocialif in the initslerpenment wish ABC Aesulted: b. Compiele the income stateminet using the bobes recommended by the controlier. Using machine-hours to allocate production overhead, complete the income statement for Ellis Equipment. Follow the controller's reconsmendation and do not attempt to allocate facility administration or miscellaneous fixed overthead. Notes Do not round intermediate calculations. Input all amounts as positive values. Using machine-hours to allocate production overthead. complete the income statement for Ellis Equipment. Follow the controller's recommendation and do not attempt to aliocate factily administration of miscellaneous fored overhead. Complete the income statement using the bases recommended by the controller. How might actvity-based costing resuit in better decisions by Elis Equipment's management? Complete this question by entering your answers in the tabs below. Complete the income ttatement using the bases recommended by the controller: Nokit: Do not round intermediate caloulations, Input all ampunts as positive wolues. 6. Using mactine-hours 10 aliocate productoon overhead, complese the income statement for Elis Equipment Follow the controller's. recommenoason and do not oftempt to aliocare facility adminstration or miscelianeous fored overhead b. Complefe the throme stanement usifg the bases recommended by the controllec. c. How mught activay based costing retuit in better decisions by Elins Equipmenr's management? Cnamplete thas question by entering your answers in the tabs below