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E 280,000 Exercise 17-141-3, (Video) Bramble Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to

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E 280,000 Exercise 17-141-3, (Video) 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 3300,000 $420,000 Direct materials costs $50,000 $50,000 Direct labor costs 120,000 Overhead cos 78,000 348,000 120,000 450.000 Operating income (om) $50,000 $(30,000) The controller Pegoy Kingman, I concerned about the residential product line. She cannot understand why this tine is not more profitable given that the installations of window coverings are complex for residential customers. In addition, the residential client baseredes in dose proximity to the company office, so travel costs are not as expensive ona per dient visit for residential Here are the tree Vity cost pool and related information she developed customers at the handded to take a look at the overhead cost signed to the two product lines to determine whether a more accurate product costing model can be developed Estimated Activity Cost Pools Overhead Cost Drivers Scheduling and travel 175.000 Hours of travel Setup time 10,000 Number of setups Servin 40,000 Direct labor cost Estimated Use of Cost Drivire per Product Commercial Residential Scheduling and travel 350 550 Satu 250 compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision tu Overhead Rates Scheduling and travel per hour Setup time per setup Supervision per dollar LINK TO TEXT VIDEO: SIMILAR EXERCISE Determine the overhead cost assigned to each product line. Commercial Residential Scheduling and travel Setup time Supervision Total cost assigned Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) Commercial Residential

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