Business, 17.07.2020 21:01 fseftrwer2522

Ayala 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. Products Sales Revenue Traditional ABC
Product 540X 198,200 54,440 45,520
Product 137Y 158,700 49,090 39,290
Product 249S 83,190 11,290 30,010
Instructions
a) For each product line, compute operating income using the traditional costing system.
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 (round the percentage to two decimals):

Answers: 3

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Ayala Inc. has conducted the following analysis related to its product lines, using a traditional co...