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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
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system volumebased and an activitybased costing system. The
traditional and the activitybased costing systems assign the same amount of direct materials and direct labor costs.
Total Costs
For each product line, compute operating income using the traditional costing system.
For each product line, compute operating income using the activitybased costing system.
Using the following calculation, 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 costRound to two decimals.
a Operating Income, X Traditional
b Operating Income, Y Traditional
c Operating Income, S Traditional
d Operating Income, X ABC
e Operating Income, Y ABC
f Operating Income, S ABC
g Percent Difference, X
h Percent Difference,
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