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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
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
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