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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
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 Product 540x Sales Revenue Traditional ABC $200,000 $56.000 $49,100 Product 137Y 163.000 55,000 38,000 Product 2495 92,000 18,000 41.900 X Your answer is incorrect For each product line, compute operating income using the activity-based costing system Product 540K $ 2000 Product 137Y $ 45000 Product 2495 $ 07000
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