Some texts make a rule, as in your second solution, that
multiplication without a symbol ("implied multiplication") should be
done before any other operations in an expression, including "explicit
multiplication" using a symbol. Following this rule, you would
multiply a by x, then multiply b and y, then divide one by the other.
Some (probably most) texts don't mention such a rule - but some of
those may use it without saying so, which is far worse.
I don't know of a general rule among mathematicians that implied
multiplication should be done before explicit multiplication. As far
as I'm concerned, all multiplications fit in the same place in the
order of operations. It's not an unreasonable rule, though, since it
does seem that implied multiplication ties the operands together more
tightly, at least visually; but the idea of Order of Operations (or
precedence, as it is called in the computer world) is supposed to be
to ensure that everyone will interpret an otherwise ambiguous
expression the same way - so if some texts change the rules, or if
people do what feels natural, the purpose has been lost.