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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. Total Costs Products Sales Revenue Traditional ABC Product 540x $197.000 $59,000 $46,100 Product 1377 170,000 54,000 25,000 Product 2495 81.000 11,000 52.900 (a) Your answer is correct For each product line, compute operating income using the traditional costing system Your answer is correct. For each product line, compute operating income using the traditional costing system Product 540X $ $ 138,000 Product 137Y $ 116,000 Product 2495 $ $ 70,000 Attempt (b) Your answer is correct For each product line, compute operating income using the activity-based costing system. Product 540X $ 150.900 Product 1377 $ 145,000 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 eg. -45.25% or parentheses es. (45.25)%) Product 540X % Product 137 % Product 2495 %6 Save for Later Attempts:0 of 3 used Submit

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