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Sunland 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
Sunland 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 $200,000 $53,000 $47,120 Product 137Y 162.000 48.000 29,760 Product 2495 92.000 25.000 49,120 (a) For each product line, compute operating income using the traditional costing system Product 540x Product 137Y (a) For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 2495 $
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