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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 1377 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 $ 107000 Product 137Y $ 69000 Product 2495 Assistance Used e Textbook and Media (c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala: (Operating Income (ABC) - Operating Income (traditional cost)] + Operating Income (traditional cost). (Round answers to 2 decimal places, e.g. 12.25%. Enter negative answers using either a negative sign preceding the number eg.-45.25% or parentheses e.g. (45.25)%.) Product 540x % Product 1377 % Product 2495 % e Textbook and Media Attempts: 0 of 5 used Submit

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