Compute operating income using traditional costing system

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Question - 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

Traditional

ABC

Product 540X

$212,000

$58,000

$45,900

Product 137Y

165,000

50,000

39,000

Product 249S

82,000

20,000

43,100

Required - For each product line, compute the operating income using the traditional costing system.

Reference no: EM131720620

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