Crane sells window coverings to both commercial and residential customers. The following information relates to its budgeted operations for the current year:

				Commercial				Residential
Revenues				$ 300,000				$ 480,000
Direct material costs		$ 30,000				$ 70,000
Direct labour costs		100,000				300,000
Overhead costs		55,000		185,000		162,000		532,000
Operating income (loss)				$ 115,000				$(52,000	)

The controller, Patricia Johnson, is concerned about the residential product line. She cannot understand why this line is not more profitable given that window coverings are less complex to install for residential customers. In addition, the residential client base resides close 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. Following are the three activity cost pools and related information she developed:

Activity Cost Pools		Estimated Overhead			Cost Drivers
Scheduling and travel		$ 92,400			Hours of travel
Set-up time		73,160			Number of set-ups
Supervision		51,440			Direct labour cost

		Use of Cost Drivers per Product
		Commercial		Residential
Scheduling and travel		1,000		680
Set-up time		370		220

(a)

Partially correct answer icon

Your answer is partially correct.

Calculate the activity-based overhead rates for each of the three cost pools, and determine the overhead cost assigned to each product line. (Round overhead rate for supervision to 2 decimal places, e.g. 15.25% and other answers to 0 decimal places, e.g. 25,000.)

		Overhead rates
Scheduling and travel		$ enter a dollar amount per travel hour	per travel hour
Set-up time		$ enter a dollar amount per set-up	per set-up
Supervision		enter percentages of direct labour cost rounded to 2 decimal places	% of direct labour cost

		Commercial		Residential
Total overhead costs applied		$ enter a dollar amount		$ enter a dollar amount