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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.
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 $195,000 $56,000 $46,600 Product 137Y 158,000 55,000 37,000 Product 249$ 84,000 10,000 37,400 For each product line, compute operating income using the traditional costing system. Product 540X $ 139,000 Product 137Y $ 103,000 Product 2495 $ 74,000 For each product line, compute operating income using the activity-based costing system. Product 540X Product 137Y +A $ +A $ 148,400 121,000 Product 249$ LA $ 46,600 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 e.g. -45.25% or parentheses e.g. (45.25)%.) Product 540X Product 137Y Product 249$ do do % % %
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