E4.2 (LO 1), AP 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. The traditional and the activity-based costing systems assign the same amount of direct materials and direct labor costs. Explain differe and activity.ba Products Product 540X Product 137Y Product 2495 Sales Revenue $180,000 160,000 70,000 Total Costs Traditional ABC $55,000 $50,000 50,000 35,000 15,000 35,000 Instructions a. For each product line, compute operating income using the traditional cosung b. For each product line, compute operating income using the activity-based costing system. C. 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 to two decimals.) d. Provide a rationale as to why the costs for Product 540X are approximately the same using either the traditional or activity-based costing system. E4.3 (LO 1.2). AN E L onal