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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. Products Product 540X Product 137Y Product 2495 Sales Revenue $196,000 162.000 79,000 Total Costs Traditional ABC $56,000 $46,400 52,000 25,000 23,000 59,600 For each product line, compute operating income using the traditional costing system Product 540X $ Product 1377 $ Product 2495 $ Save for Later
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