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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
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 137 Product 2495 Total Costs Sales Revenue Traditional ABC $210,000 $59,000 $45,400 164,000 50,000 40,000 83,000 11,000 34,600 For each product line, compute operating income using the traditional costing system Product 540X $ Product 137Y $ Product 2495 $ e Textbook and Media For each product line, compute operating Income using the activity-based costing system. Product 540X $ Product 1377 $ Product 2495 $ Rooli Product 2495 $ e Textbook and Media 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, s. 12.25. Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses es. (450) Product 540x Product 1377 Product 2495 e Textbook and Media Attempts:0 of 3 used Save for Later Submit Answer & Prov Send to Gradebook Next > Previous MacBook Air
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