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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. Total Costs Products Sales Revenue Traditional ABC Product 540X $210,000 $59,000 $47,600 Product 137Y 166,000 49,000 29,000 Product 2495 94,000 17,000 48,400 (a) D B Question 1 of 5 > (a) Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540x $ 151000 Product 137Y $ 117000 Product 2495 $ 77000 eTextbook and Media 3.33/5 Attempts: 1 of 5 used Your answer is correct. For each product line, compute operating income using the activity-based costing system. Product 540X $ 162400 Product 137Y $ 137000 (c) Product 2495 $ 45600 eTextbook and Media Attempts: 1 of 5 used Your answer is incorrect. 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 137Y Product 2495 eTextbook and Media Save for Later Last saved 22 seconds ago. % % Saved work will be auto-submitted on the due date. Auto- Attempts: 1 of 5 used Submit
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