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

ID: 2546717 • Letter: E

Question

Exercise 17-2 (Part Level Submission) Ayala Inc. has conducted the foliowing analysis re ated to ts product lines, using a traditional costing system (volume-based) and an activty-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 240S Sales Revenue 195,000 58,000 84,000 Traditional ABC $58,000 $48600 55,000 37,000 0,000 37.400 (a) For each product line, compute operating income using the traditional costing system. Product 137Y Product 249s Click if you would like to Show Work for this question: Open Show Work Atempss: 0 of 15 used SAVE FOR LATER SUBMIT ANSWER SUBMIT ANSWER

Explanation / Answer

Computation of Operating Income using the Traditional Costing System

Product 540X

Product 137Y

Product 249S

Sales Revenue

$ 1,95,000

$ 1,58,000

$ 84,000

Less : Total Cost – Traditional

$ 56,000

$ 55,000

$ 10,000

Operating Income

$ 1,39,000

$ 1,03,000

$ 74,000