Ez-seat, inc., manufactures two types of reclining chairs, standard and ergo. ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. standard is a conventional recliner, uses standard materials, and is simpler to manufacture. ez-seat’s results for the last fiscal year are shown in the statement below. ez-seat, inc. income statementergo standard totalsales revenue $ 2,000,000 $ 5,000,000 $ 7,000,000 direct materials 600,000 1,500,000 2,100,000 direct labor 400,000 500,000 900,000 overhead costs administration 630,000 production setup 480,000 quality control 285,000 distribution 760,000 operating profit $ 1,845,000 ez-seat currently uses labor costs to allocate all overhead, but management is considering implementing an activity-based costing system. after interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining costs: activity levelactivity base cost driver ergo standardsetting up number of production runs 60 100performing quality control number of inspections 190 190distribution number of units shipped 1,500 6,100required: a. complete the income statement using the preceding activity bases. (do not round intermediate calculations.)account ergo standard totalsales revenue $2,000,000 $5,000,000 $7,000,000direct materials $600,000 $1,500,000 $2,100,000direct labor 400,000 500,000 900,000overhead costs: administration 630,000production setup 480,000quality control 285,000distribution 760,000total overhead costs 2,155,000operating profit (loss) $1,000,000 $3,000,000 $1,845,000c. restate the income statement for ez-seat using direct labor costs as the only overhead allocation base. (do not round intermediate calculations.)account ergo standard totalsales revenue $2,000,000 $5,000,000 $7,000,000direct materials 600,000 1,500,000 2,100,000direct labor 400,000 500,000 900,000overhead costs 0operating profit (loss) $1,000,000 $3,000,000 $4,000,000