Question: can you help me with this question please? E4.2 (LO 1). AP Ayala Inc. has conducted the following analysis related to its product lines, using

can you help me with this question please?

can you help me with this question please? E4.2 (LO 1). AP

E4.2 (LO 1). AP Ayala Inc. has conducted the following analysis related to its product lines, using a Explain difference between traditional traditional costing system (volume-based) and an activity-based costing system. The traditional and the and activity-based costing. activity-based costing systems assign the same amount of direct materials and direct labor costs. 4-34 CHAPTER 4 Activity-Based Costing Total Costs Products Sales Revenue Traditional ABC Product 540X $180.000 $55,000 $50.000 Product 137Y 160,000 50,000 35,000 Product 2495 70,000 15,000 35,000 Instructions a. For each product line, compute operating income using the traditional costing system. b. For each product line, compute operating income using the activity-based costing system. c. 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 to two decimals.) d. Provide a rationale as to why the costs for Product 540X are approximately the same using either the traditional or activity-based costing system

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