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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. Products Product 540X Product 137Y Product 2495 Sales Revenue $201.000 163,000 92,000 Total Costs Traditional ABC $54,000 $47,800 51,000 41,000 20,000 36,200 (a) For each product line, compute operating income using the traditional costing system. Product 540X TA Product 137Y $ Product 2495 TA For each product line, compute operating income using the activity-based costing system Product 540X $ Product 1377 $ Product 2495 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 0.9. -45 or parentheses 0.9. (45).) Product 540X Product 137 Product 2495

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