Question
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$49,200Product 137Y156,00049,00027,000Product 249S93,00018,00047,800
(a)
For each product line, compute operating income using the traditional costing system.
Product 540X$
enter a dollar amount of operating income using the traditional costing system
Product 137Y$
enter a dollar amount of operating income using the traditional costing system
Product 249S$
enter a dollar amount of operating income using the traditional costing system
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