Ivanhoe Inc. has conducted the following analysis related to its product lines using a traditional costing system (volume-based) and anactivity-based costing system. Both the traditional and activity-based costing systems include direct materials and direct labour costs.ProductsProduct 440XProduct 137YProduct 249S(a)Sales Revenue$201,000172,000Operating income87,000Total CostsTraditional$55,00074,00026,000Additional information related to product usage by these pools is as follows:ABC$50,03670,66834,296For each product line, calculate operating income using the traditional costing system.Product 440XTraditional costing system$Product 137Y$Product 249S

Direct materials are the expenses that are directly used for the production of goods and services…

Ivanhoe 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. Products Product 440X Product 137Y Product 249S (a) Sales Revenue $201,000 172,000 87,000 Total Costs Traditional Operating income $ $55,000 74,000 26,000 Additional information related to product usage by these pools is as follows: ABC $50,036 70,668 34,296 For each product line, calculate operating income using the traditional costing system. Product 440X Traditional costing system $ Product 137Y $ Product 249S

Ivanhoe 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. Products Product 440X Product 137Y Product 249S (a) Sales Revenue $201,000 172,000 87,000 Total Costs Traditional Operating income $ $55,000 74,000 26,000 Additional information related to product usage by these pools is as follows: ABC $50,036 70,668 34,296 For each product line, calculate operating income using the traditional costing system. Product 440X Traditional costing system $ Product 137Y $ Product 249S

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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