Bramble 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
Revenues		$288,000		$484,000
Direct materials costs	$30,000		$50,000
Direct labor costs	120,000		280,000
Overhead costs	78,000	228,000	184,000	514,000
Operating income (loss)		$60,000		$(30,000)

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 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
Scheduling and travel		$78,000	Hours of travel
Setup time		84,000	Number of setups
Supervision		100,000	Direct labor cost

Estimated Use of Cost Drivers per Product
	Commercial		Residential
Scheduling and travel		700		600
Setup time		350		25

a) Compute the activity-based overhead rates for each of the three cost pools

b) Determine the overhead cost assigned to each product line and the total

c) Compute the operating income for each product line, using the activity-based overhead rates.