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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

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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 Products Product 540X Product 1377 Product 2495 Sales Revenue 5207.000 155.000 85.000 Total Costs Traditional ABC 354,000 $48,700 50,000 33,000 11,000 33,300 (a) For each product line, compute operating income using the traditional costing system Product 540X $ Product 1377 $ Product 2495 $

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