Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Current Attempt in Progress Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based
Current Attempt in Progress 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 $196,000 $56,000 $46,400 Product 137Y 162,000 52,000 25.000 Product 2495 79,000 23,000 59,600 (a) Your answer is correct For each product line, compute operating income using the traditional costing system. Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540X $ 140000 Product 137Y $ 110000 Product 2495 $ 56000 (b) eTextbook and Media: Your answer is correct. For each product line, compute operating income using the activity-based costing system. Attempts: 1 of 5 used (b) Your answer is correct. For each product line, compute operating income using the activity-based costing system. Product 540X $ 149600 Product 137Y S 137000 Product 2495 $ 19400 (c) eTextbook and Media * Your answer is incorrect. Attempts: 1 of 5 used (c) Your answer is incorrect. 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, eg. 12.25%. Enter negative answers using either a negative sign preceding the number eg. -45.25% or parentheses e.g. (45.25)%) Product 540X 149600 % Product 137Y 137000 % Product 2495 eTextbook and Media. 19400 %
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