Sheffield 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. Products Product 540X Product 137Y Product 249S Sales Revenue $196,000 162,000 79,000 Total Costs Traditional $56,000 52,000 23,000 ABC $46,340 36,600 48,060 4

Sheffield 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. 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 2495 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 onswers to 2 decimal places, es. 12.25\%. Enter negative answers using elther a negative slgn preceding the number es. 45.25% or parentheses es. (45.25) 6 .) Product 540X % Product 137Y % Product 2495 %