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$49,100Product 137Y163,00055,00038,000Product 249S92,00018,00041,900

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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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Your answer is incorrect.

For each product line, compute operating income using the activity-based costing system.

Product 540X$

enter a dollar amount of operating income using the activity-based costing system

Product 137Y$

enter a dollar amount of operating income using the activity-based costing system

Product 249S$

enter a dollar amount of operating income using the activity-based costing system

eTextbook and Media

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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 places, e.g. 12.25%. Enter negative answers using either a negative sign preceding the number e.g. -45.25% or parentheses e.g. (45.25)%.)

Product 540Xenter the percentage difference in operating income rounded to 2 decimal places

%Product 137Yenter the percentage difference in operating income rounded to 2 decimal places

%Product 249Senter the percentage difference in operating income rounded to 2 decimal places

%

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