B

Lily 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. (a) Your answer is correct. For each product line, compute operating income using the traditional costing system. For each product line, compute operating income using the traditional costing system. Product 540X$ Product 137Y$ Product 2495$ (b) For each product line, compute operating income using the activity-based costing system. Product 540$ Product 137y $ Product 2495$