Question
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 | $ enter a dollar amount | |
---|---|---|
Product 137Y | $ enter a dollar amount | |
Product 249S | $ enter a dollar amount |
eTextbook and Media
For each product line, compute operating income using the activity-based costing system.
Product 540X | $ enter a dollar amount | |
---|---|---|
Product 137Y | $ enter a dollar amount | |
Product 249S | $ enter a dollar amount |
eTextbook and Media
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 | enter percentages rounded to 2 decimal places | % | |
---|---|---|---|
Product 137Y | enter percentages rounded to 2 decimal places | % | |
Product 249S | enter percentages rounded to 2 decimal places | % |
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