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

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Accounting

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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 Sales Revenue Traditiona ABC Product 540X $199,000 $57,000 $49,400 155,000 48,000 29,000 82,00020,000 46,600 Product 137Y Product 249S Your answer is correct. For each product line, compute operating income using the traditional costing system Product 540X $ Product 137Y$ Product 249S $ 142000 107000 62000

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