Exercise 17-2 (Part Level Submission) Ayala Inc. has conducted the following ana

Question

Exercise 17-2 (Part Level Submission) 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. Total Costs Products Product 540X Product 137Y Product 249S Sales Revenue Traditional ABC $195,000 158,000 84,000 S56,000 $46,600 55,000 37,000 10,000 37,400 Your answer is correct. For each product line, compute operating income using the traditional costing system. Product 540X 139,000 Product 137Y 103,000 Product 249S 4,000 Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT Attempts: 1 of 15 used

Explanation / Answer

b) Compute operating income using activity based costing system :

Product 540X (195000-46600) 148400 Product 137Y (158000-37000) 121000 Product 249S (84000-37400) 46600

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