Current Attempt in Progress 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 Direct materials costs Direct labor costs Overhead costs Operating income (loss) Commercial $352,500 $45.000 130.000 112.500 287.500 $65.000 Residential $500,000 $50,000 270.000 200.000 520,000 $120,000) 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 Scheduling and travel Setup time Estimated Overhead $112.500 120,000 Cost Drivers Hours of travel Number of setups Question 19 of 25 - 15 Setup time Supervision 120.000 80,000 Number of setups Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 700 550 Setup time 500 250 Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, eg. 0.38.) Overhead Rates Scheduling and travel $ per hour Setup time $ per setup Supervision $ per dollar e Textbook and Media Determine the overhead cost assigned to each product line. Commercial Residential $ Scheduling and travel Setup time Supervision $ $ $ Total cost assigned $ $ e Textbook and Media Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) e Textbook and Media Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) $ Commercial Residential $ e Textbook and Media Save for Later Attempts: 0 of