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Current Attempt in Progress Vaughn Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an
Current Attempt in Progress Vaughn 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 $200,000 $56,000 $48,800 Product 137Y 163,000 55,000 35,560 Product 2495 92,000 18,000 44,640 For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 2495 $ For each product line, compute operating income using the activity-based costing system. Product 540X $ Product 137Y $ Product 2495 $ 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, eg. 12.25%. Enter negative answers using either a negative sign preceding the number eg. -45.25% or parentheses eg. (45.25)%) Product 540X Product 137Y Product 2495
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