Wildhorse 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 activity-based costing systems include direct materials and direct labour costs. Product 440X Product 137Y Product 2495 Products (a) Sales Revenue $202,000 179,000 82,000 Your answer is correct. Operating income $ (b) Additional information related to product usage by these pools is as follows: eTextbook and Media Solution For each product line, calculate operating income using the traditional costing system. Traditional costing system Operating income Traditional eTextbook and Media Total Costs $55,000 63,000 25,000 Product 440X 147000 ABC $ Product 440X $50,002 59,056 33,942 For each product line, calculate operating income using the activity-based costing system. $ Product 137Y 116000 Activity-based costing system Product 137Y Product 2495 $ 57000 Product 2495

Wildhorse 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 activity-based costing systems include direct materials and direct labour costs. Product 440X Product 137Y Product 2495 Products (a) Sales Revenue $202,000 179,000 82,000 Your answer is correct. Operating income $ (b) Additional information related to product usage by these pools is as follows: eTextbook and Media Solution For each product line, calculate operating income using the traditional costing system. Traditional costing system Operating income Traditional eTextbook and Media Total Costs $55,000 63,000 25,000 Product 440X 147000 ABC $ Product 440X $50,002 59,056 33,942 For each product line, calculate operating income using the activity-based costing system. $ Product 137Y 116000 Activity-based costing system Product 137Y Product 2495 $ 57000 Product 2495

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter19: Variable Costing (varcost)

Section: Chapter Questions

Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...

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