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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$49,200Product 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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