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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

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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 traditional and the activity-based costing systems include direct materials and direct labor costs. Total Costs Products Sales Revenue Traditional ABC Product 540X $200,000 $56,000 $46,200 Product 137Y 169,000 54,000 36,000 Product 2495 80,000 22,000 49,800 (a) Your answer is incorrect. For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 2495 S 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 $200,000 $56,000 $46,200 Product 137Y 169,000 54,000 36,000 Product 2495 80,000 22,000 49,800 (a) Your answer is incorrect. For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 2495 S

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