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Exercise 4-2 a-c 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 4-2 a-c 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 Traditional Revenue Product 540X $59,000 $47,600 $210,000 Product 137Y 166.000 49,000 29.000 Product 249S 94.000 17,000 48.400 For each product line, compute operating income using the traditional costing system. Product 540x Product 137Y Product 249s For each product line, compute operating income using the activity-based costing system Product 540X Product 137Y Product 249S 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)] number e.g. -45.25% or parentheses e.g. (45.25) %.) Operating Income (traditional cost). (Round answers to 2 decimal places, e.g. 12.259%. Enter negative answers using either a negative sign preceding the Product 540X % Product 137Y Product 249S pen Show Work click if you would like to Show Work for this
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