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Pickie Motorcycles, Inc. (PM), manufactures three motorcycle models: a cruising bike (Route 66), a street bike (Main Street), and a starter model (Aliley Cat). Because of the different materials used, production processes for each model differ significantly in terms of machine types and time requlrements. Once parts are produced, however, assembly time per unit required for each type of bike is similar. For this reason, PMi allocates overhead on the basis of machine-hours. Last year, the company shipped 1,000 Route 66s, 4,000 Main Streets, and 10,000 Alley Cats and had the following revenues and expenses. PMi's chiet financial officer (CFO) hired a consultant to recommend cost allocation bases. The consultant recommended the foltowing. Mi's chief financial officer (CFO) hired a consutant to recommend cost alocation bases. The consultant recommended the following? The consultant found no basis for allocating the plant administration and other fixed overhead costs and recommended that these not be applied to products. Required: 6. Using machine-hours to allocate production overhead, complete the income statement for Pickle Motorcycies. (See the "using energy" activity for machine hours.) Do not attempt to allocate plont administration or other fixed overhead. b. Complete the income statement using the bases recommended by the consultant. c. How might activity-based costing result in better decisions by Pickle Motorcycles's management? (8) Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Complete the income stetement esing the bases recommended by the consutant, (Co not round intermediate cotculations. Inout ald ambuints as pos tive values? Complete the income statement using the bases recommended by the consultant. (Do not rourid intermediate calculations. Input an amounts as positive values.)

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