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all parts of one question pleDe help will like Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The
all parts of one question pleDe help will like
Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year. Revenues Commercial $300,800 $30,100 101,600 Residential $479,000 $50,000 298,500 Direct materials costs Direct labor costs Overhead costs Operating income (loss) 85,300 217,000 151,000 499,500 $83,800 $(20,500) The controller, Peggy Kingman, is concerned about the residential product line, She cannot understand why this line is not more profitable given that the installations of window coverings are less complex for residential customers. In addition, the residential client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a closer look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be developed. Here are the three activity cost pools and related information she developed Activity Cost Pools Estimated Overhead Cost Drivers $98,500 Hours of travel Scheduling and travel Setup time 71,800 Number of setups Supervision 66,000 Direct labor cost Expected Use of Cost Drivers per Product Commercial Residential Scheduling and travel 580 970 Setup time 380 210 Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. 12.25.) Overhead Rates Scheduling and travel $ Setup time $ Supervision % e Textbook and Media Determine the overhead cost assigned to each product line. (Round answers to 0 decimal places, e.g. 1,575.) Commercial Residential Scheduling and travel $ $ $ Setup time $ $ $ Supervision $ $ $ Total cost assigned $ $ e Textbook and Media e Textbook and Media Compute the operating income for each product line, using the activity based overhead rates. (Round answers to 0 decime places, e.g. 1,575.) Operating income (loss) Commercial $ Residential $ e Textbook and Media Step by Step Solution
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