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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

FINANCIAL ACCOUNTING
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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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 249S Products (a) Sales Revenue $202,000 179,000 (b) Your answer is correct. Operating income $ eTextbook and Media Solution 82,000 Additional information related to product usage by these pools is as follows: Operating income $ Traditional eTextbook and Media For each product line, calculate operating income using the traditional costing system. Total Costs $55,000 Product 440X 63,000 25,000 147000 ABC Traditional costing system Product 440X $50,002 59,056 33,942 $ Product 137Y 116000 For each product line, calculate operating income using the activity-based costing system. Activity-based costing system $ Product 137Y Product 2495 57000 Product 249S
Transcribed Image Text: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 249S Products (a) Sales Revenue $202,000 179,000 (b) Your answer is correct. Operating income $ eTextbook and Media Solution 82,000 Additional information related to product usage by these pools is as follows: Operating income $ Traditional eTextbook and Media For each product line, calculate operating income using the traditional costing system. Total Costs $55,000 Product 440X 63,000 25,000 147000 ABC Traditional costing system Product 440X $50,002 59,056 33,942 $ Product 137Y 116000 For each product line, calculate operating income using the activity-based costing system. Activity-based costing system $ Product 137Y Product 2495 57000 Product 249S
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