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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. Both 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. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.

Total Costs

Products

Sales Revenue

Traditional

ABC

Product 540X

$200,000 $53,000 $47,100

Product 137Y

162,000 48,000 29,000

Product 249S

92,000 25,000

49,900

For each product line, compute operating income using the traditional costing system.

Product 540X

$enter a dollar amount

Product 137Y

$enter a dollar amount

Product 249S

b) For each product line, compute operating income using the activity-based costing system c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala:{Operating Income (ABC)-Operating Income traditional cost)]divided operating Income (traditional cost)(round the percentage to two decimals).

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