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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 $211,000 $60,000 $48,200 Product 137Y 164,000 54,000 44,000 Product 2495 86.000 22,000 43,800 Your answer is correct For each product line, compute operating income using the traditional costing system. Product 540x $ 151000 Product 137Y $ 110000 Product 2495 $ 64000

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