Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 Product 137Y $200,000 169,000 $56,000 $46.200 54,000 36,000 Product 2495 80,000 22,000 49.800 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 eg-45.25% or parentheses eg (45.25%) Product 540x Product 137Y Product 2495
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started