Ayala Inc. has conducted the following analysis 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 costs.

Total Costs:

Products: ABC Product 540X, Product 137Y, Product 249S

Sales Revenue: $180,000, $160,000, $70,000

Traditional: $55,000, $50,000, $15,000

ABC: $50,000, $35,000, $35,000

1. Provide a rationale as to why the costs for Product 540X are approximately the same using either the traditional or activity-based costing system.