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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

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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. Products Product 540x Product 137Y Product 2495 Sales Revenue $208,000 155,000 92.000 Total Costs Traditional ABC $54,000 $49,000 48,000 30,000 23,000 46,000 (a) Your answer is correct For each product line, compute operating income using the traditional costing system $ 154000 Product 540x Product 1377 $ 107000 Product 2495 $ 69000 For each product line, compute operating income using the activity-based costing system. Product 540x $ Product 1377 $ Product 2495 $ I eTextbook and Media Assistance

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