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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 Traditional ABC $56,000 Sales Revenue $201.000 159.000 Products Product 540x Product 1377 Product 2495 $45,600 55,000 25,000 89,000 15,000 55,400 (a) Your answer is correct. (b) For each product line, compute operating income using the activity-based costing system. Product 540X $ Product 137Y Product 2495 e Textbook and Media Attempts: 0 of 3 used Submit Answer Save for Later (c)

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