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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
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 $206,000 $57,000 $49,200 Product 137Y 156,000 49,000 27,000 Product 2495 93,000 18,000 47,800 (a) V Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540x $ 149,000 Product 137v $ 107,000 Product 2495 $ 75,000 eTextbook and Media Attempts: 1 of 5 used (C) 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 piaces, e.g. 12.25%. Enter negative answers using either a negative sign preceding the number eg. -45.25% or parentheses eg. (45.25)%.) Product 540X % Product 137V % Product 249$ % eTextbook and Media Assistance Used Save for Later Attempts: 0 of 5 used
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