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Exercise 18-2 Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume- based) and an activity-based costing
Exercise 18-2 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 Sales Products Revenue Traditional ABC Product 540x $206,000 $58,000 $48,700 Product 137Y 174,000 53,000 27,000 Product 2495 78,000 25,000 60,300 Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540x 148000 Product 137Y 121000 Product 2495 53000 LINK TO TEXT Your answer is correct. For each product line, compute operating income using the activity-based costing system. Product 540x 157300 Product 137Y 147000 Product 2495 17700 LINK TO TEXT X 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 0.06 % Product 137Y 17.68 % Product 2495 %
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