Question
exercise 17-2 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.
exercise 17-2 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 $210,000 $59,000 $45,400 Product 137Y 164,000 50,000 40,000 Product 249S 83,000 11,000 34,600 Correct answer. Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540X $Entry field with correct answer 151000 Product 137Y $Entry field with correct answer 114000 Product 249S $Entry field with correct answer 72000 LINK TO TEXT Correct answer. Your answer is correct. For each product line, compute operating income using the activity-based costing system. Product 540X $Entry field with correct answer 164600 Product 137Y $Entry field with correct answer 124000 Product 249S $Entry field with correct answer 48400 LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. 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, e.g. 12.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product 540X Entry field with incorrect answer now contains modified data % Product 137Y Entry field with incorrect answer % Product 249S Entry field with incorrect answer %
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