Exercise 16-2 (Part Level Submission) Ayala Inc. has conducted the following ana

Question

Exercise 16-2 (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 Sales Revenue Products Product 540X Product 137Y Product 249S Traditional ABC $211,000 164,000 86,000 $0,000 $48,200 54,000 44,000 22,000 43,800 Your answer is correct. For each product line, compute operating income using the traditional costing system Product 540× 1000! Product 137Y a110 Product 249S 000) Attempts: 1 of 2 used For each product line, compute operating income using the activity-based costing system Product 540X Product 137Y Product 249S

Explanation / Answer

Ans. 2 Activity-based costing system: Product 540 X Product 137 Y Product 249 S Sales revenue 211000 164000 86000 Less: ABC -48200 -44000 -43800 Operating Income 162800 120000 42200

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