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		$206,000		$57,000		$49,200
Product 137Y		156,000		49,000		27,000
Product 249S		93,000		18,000		47,800

(a)

For each product line, compute operating income using the traditional costing system.

Product 540X		$enter a dollar amount of operating income using the traditional costing system
Product 137Y		$enter a dollar amount of operating income using the traditional costing system
Product 249S		$enter a dollar amount of operating income using the traditional costing system

(b)

For each product line, compute operating income using the activity-based costing system.

Product 540X		$enter a dollar amount of operating income using the activity-based costing system
Product 137Y		$enter a dollar amount of operating income using the activity-based costing system
Product 249S		$enter a dollar amount of operating income using the activity-based costing system