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Current Attempt in Progress Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and a
Current Attempt in Progress Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and a activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labou costs. Total Costs Products Sales Revenue Traditional ABC Product 540X $198,000 $59,000 $48,400 Product 137Y 175,000 51,000 44,000 Product 2495 76,000 18,000 35,600 (a) Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540X $ 139000
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