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Current Attempt in Progress Crane 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 Crane 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 Sales Revenue Products Traditional ABC Product 540x $195,000 $53,000 $45,900 Product 1377 155,000 48,000 34,625 Product 2495 75,000 10,000 30,475 (a) Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540x $ 142,000 Product 137Y $ 107,000 Product 2495 $ 65,000 e Textbook and Media Attempts: 1 of 2 used (b) Your answer is correct. For each product line, compute operating income using the activity-based costing system. Product 540X $ 149.100 Product 137Y $ 120,375 Product 2495 $ 44.525 e Textbook and Media Attempts: 1 of 2 used (c) X Your answer is incorrect. 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 50 % Product 137Y 125 % Product 2495 315 % e Textbook and Media
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