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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
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 casts Total Costs Products Sales Revenue TraditionalABC Product 540X $206,000 $59,000 $48,100 Product 137Y 172,000 9,000 44,000 Product 2495 87,000 25,000 40,900 For each product line, compute operating incame using the traditional costing system. Product 540x S Product 137Y $ Product 2495 $ For each prodluct line, compute o the based c Product 540X Product 137Y Product 249S Using the following farmula, computo the percontage differance in oporating incomo for oach ot the product lines of Ayala: [Operating Income (ABC)-Operating Incame (traditional cost Operating income [traditional cost) (Round answers to 2 decimal places, eg. 12.25%. lf enter with either a or in parenthesis, 4 12.25% or Product 540X 95 Product 137Y Product 2495 95
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