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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
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 $199,000 $57,000 $51,320 Product 137Y 155,000 48,000 29.810 Product 2495 82,000 20,000 43,870 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 $ 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 eg. -45.25% or parentheses e.g. (45.25) %.) Product 540X % Product 137Y Product 2495 eTextbook and Media % %
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