Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ayala inc. has conducted the following analysis re

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

50.1K

Verified Solution

Question

Accounting

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.

image

Total Costs Products Product 540X Product 137Y Product 2495 Sales Revenue $195,000 158,000 84,000 Traditional $56,000 55,000 10,000 ABC $46,500 37,000 37,400 For each product line, compute operating income using the traditional costing system. Product 540x Product 137Y Product 249S LINK TO TEXT For each product line, compute operating income using the activity-based costing system. Product 540X Product 137Y Product 249S s LINK TO TEXT 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)] = Operating Income (traditional cost). (Round answers to 2 decimal places, e.g. 12.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product 540x Product 137Y Product 2495

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students