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Exercise 4-2 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 4-2 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 Revenue Products Product 540X Product 137Y Product 249S Traditional ABC $200,000 169,000 80,000 $56,000 $46,200 54,000 36,000 22,000 49,800 For each product line, compute operating income using the traditional costing system Product 540X Product 137Y Product 249S s LINK TO TEXT For each product line, compute operating income using the activity-based costing system Product 540X Product 137Y Product 540X Product 137Y s Product 249S LINK TO TEXT Using the following formula, compute the percentage difference in operating income for each ofthe product lines of Aala O erating income . Operating come (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 Product 137Y Product 249S Click if you would like to Show Work for this question: Open Show Work
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