Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lily 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

image text in transcribedimage text in transcribed

Lily 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. Total Costs Products Sales Revenue Traditional ABC Product 540X $207,000 $54,000 $46,350 Product 137Y 155,000 50,000 32,675 Product 249S 85,000 11,000 35,975 For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 2495 $ For each product line, compute operating income using the activity-based costing system. Product 540X $ Product 137Y $ Product 249S $ eTextbook and Media Using the following calculation, 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 answers using either a negative sign preceding the number e.g. -45.25% or parentheses e.g. (45.25) %.) Product 540X Product 137Y Product 2495 de % % % de de

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer

13th Edition

978-0073379616, 73379611, 978-0697789938

More Books

Students also viewed these Accounting questions

Question

How can NAFTA be beneficial to suppliers of Walmart?

Answered: 1 week ago