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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
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 $206,000 174,000 78,000 Total Costs Traditional ABC $58,000 $48,700 53,000 27,000 25,000 60,300 For each product line, compute operating income using the traditional costing system. Product 540x $ $ $ $ Product 137Y Product 2495 $ e Textbook and Media For each product line, compute operating income using the activity-based costing system. Product 540x $ $ Product 137Y $ Product 2495 $ eTextbook and Media 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, eg. 12.25%. Enter negative answers using either a negative sign preceding the number e.g.-45.25% or parentheses eg. (45.25)%.) Product 540x % Product 137Y % Product 2495 %
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