Questinn Yala nc has conducted the olbiriq arial costs s related b,s pruduct lir

Question

Questinn Yala nc has conducted the olbiriq arial costs s related b,s pruduct liries, usiriq a radburial cusuriq svs ern rolurre as d and an activit ased costino system ath he traditional and the acti l based costing sys ems ric ude direct materials and direct labor Tutal Custs Sales Traditiona ABC Products Praduct S540* Product 137t Fraduct 2495 3195,200 56,000 46,600 55,000 3T,000 10,000 37,400 158,000 84,000 For each product line, comcute operaeng inoome using=ns traditional odstrg srster produ540 Product 137Yt Producz 2495 rcr each produt Ine, comcute ope tng income using the actv-based costng systam Product 540% Product 13/Y ^ Product 2499 Using the rolla ng torn la concube the perce ca e dr erence r ceraur g con e r each of tre produc eso ala pera ng [ncome ADC Operat ne- e trad onal cost ÷ Operating Incore traditiona cost), dem ras ers to 2 dec mal p ces e.g. 1z.25. Enter negative amounts using either a negative sign preceding the number eg, -5 arentheses e.g. (45).) Producz 540X Produc: 137Y Producz 2495 91

Explanation / Answer

a Product 540X 139000 =195000-56000 Product 137Y 103000 =158000-55000 Product 249S 74000 =84000-10000 b Product 540X 148400 =195000-46600 Product 137Y 121000 =158000-37000 Product 249S 46600 =84000-37400 c Product 540X 6.76% =(148400-139000)/139000 Product 137Y 17.48% =(121000-103000)/103000 Product 249S -37.03% =(46600-74000)/74000

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