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Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based activity-based costing system. Both the traditional and
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direc costs. Products Product 540X Product 137Y Product 249S Sales Revenue $212,000 159,000 89,000 Total Costs Traditional $55,000 $47,500 52,000 ABC 21,000 42,000 38,500
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