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Concord 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

(a)

Sales

Revenue

$212,000

Product 137Y

159,000

Product 540X $

89,000

$

Total Costs

Traditional

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

$55,000

52,000

21,000

ABC

$47,150

38,090

42,760

-/1 E 1/nQuestion 8 of 13

(a)

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

Product 540X $

Product 137Y $

اما

Product 249S $

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(b)

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