For each product line, compute operating income using the activity-based costing system. Product 540X Product 137Y Product 2495 $ $ $

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
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Problem 24E: Geneva, Inc., makes two products, X and Y, that require allocation of indirect manufacturing costs....
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Vaughn Inc. has conducted the following analysis related to its product lines, using a traditional costing
system (volume-based) and an activity-based costing system. The traditional and the activity-based costing
systems assign the same amount of direct materials and direct labor costs.
Products
Product 540X
Product 137Y
Product 2495
Sales
Revenue
$200,000
163,000
92,000
Total Costs
Traditional
$56,000
55,000
18,000
ABC
$48,800
35,560
44,640
Transcribed Image Text:Vaughn Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. The traditional and the activity-based costing systems assign the same amount of direct materials and direct labor costs. Products Product 540X Product 137Y Product 2495 Sales Revenue $200,000 163,000 92,000 Total Costs Traditional $56,000 55,000 18,000 ABC $48,800 35,560 44,640
For each product line, compute operating income using the activity-based costing system.
Product 540X
Product 137Y
$
Product 2495 $
Toutheal
Transcribed Image Text:For each product line, compute operating income using the activity-based costing system. Product 540X Product 137Y $ Product 2495 $ Toutheal
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