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Expected use of cost drivers per product: scheduling and travel, setup time (commercial and resedential for both)

Determine the overhead cost assigned to each product line: scheduling+travel, setup time, super vision, total cost assigned (commercial and resedential)

Question 1 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 Commercial Residential $537,500 $50,000 280,000 Direct materials costs $35,000 Direct labor costs Overhead costs Operating income (loss) 120,000 87,500242,500 232,500562,500 $(25,000 80,000 ? 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 residentlal client base resides in close proximity to the company office, so travel costs are not as expensive on a per client visit for residentlal 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 Estimated Overhead Activity Cost Pools Cost Drivers Scheduling and travel Setup time Supervision $87,500 112,500 120,000 Hours of travel Number of setups Direct labor cost Expected Use of Cost Drivers per Product Commercial Residential Scheduling and travel Setup time 750 500 500 250 (a1) 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 s Setup time Supervision LINK TO TEXT Attempts: 0 of 3 used