Question
Oriole 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
Oriole 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 $201,000 $56,000 $48,750 Product 137Y 159,000 55,000 35,240 Product 2495 89,000 15,000 42,010 For each product line, compute operating income using the traditional costing system. Product 540x $ Product 137Y $ Product 2495 $ eTextbook and Media For each product line, compute operating income using the activity-based costing system. Product 540x $
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