Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bramble Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. The traditional
Bramble Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. The traditional and the activity-based costing systems assign the same amount of direct materials and direct labor costs. Total Costs Products Sales Revenue Traditional ABC Product 540X $206,000 $57,000 $48,805 Product 137Y 156,000 49,000 27,600 Product 249S 93,000 18,000 47,595 For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 249S $ eTextbook and Media eTextbook For each product line, compute operating income using the activity-based costing system. Product 540X $ Product 137Y $ Product 249S $ eTextbook and Media eTextbook Assistance Used Assistance Used Using the following calculation, 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 e.g. -45.25% or parentheses e.g. (45.25)%.) Product 540X Product 137Y % % Product 249S %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started