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Ayala Inc. has conducted the following ahalysis related to its product lines, using a traditional costing system (volume 'based) and an activity-based costing system. Both

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Ayala Inc. has conducted the following ahalysis related to its product lines, using a traditional costing system (volume 'based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor cossen (2)] For each product line, conpute operating income using the traditional costing sritem. Product 5tcox is Product13tr$ Product 2495: (b) V Yore answer is cimect. For rach prodact line romiote operating income uine the activity based cosling intem. Using the following formula, compute the percentage difference in operating income for each of the product lines af Ayala: \{Operating Income (ABC) - Operating Income (traditional cost) 4 Operating locone (traditicnal cost). (Round answers fo 2 . decimal places, e.9. 12.25\%. Enter negative anwers wsing either a negotive sign preceding the number e.5 - 45.259 or parentheses e.f. (45.25)x) Product 540x Product 137Y Product 2495

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