Crane Creations sells window treatments (shades, blinds, and awnings to both commercial and residential customers. The following information relates to its budgeted operations fer the current year. Commercial 5298,450 1,00 Direct materials costs $35,00O Direct labor costs Overhead costs Operating income (loss) $50,000 300,000 100,000 68,450 223,450 177,000 527,000 $(30,000 75,000 The controller, Pegay Kingman, Is concermed about the resldentlal product line. She cannot understand why this line is not more profitable glven that the Installations of window coverings are less complex for resldential customers, In addition, the resldential client base res des in close proximity to the company cffice, so travel costs are not as expensive on a per client visit for residential customers. As a result, she has decided to take a doser look at the overhead costs assigned to the two product lines to determine whether a more accurate product costing model can be develcped. Here are the three activity cost pcols and related intormation she developed: Activity Cost Pools Scheduling and travel Setup time Cost Drivers 68,450 Hours of travel 117,000 Nurmber of setups 60,000 Direct labar cost Estimated Use ol Cost Drivers per Product Commercial Residential Scheduling and travel Setup time 400 (d) Compute the activity based averhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.) Overhend Rates Scheduling and traal per dallar Setup time per setup