E4-5 Shady Lady sells window coverings (shades, blinds, and awnings) to both commercial and residential customers. The following information relates to its budgeted opera- The controller, Peggy Kingman, is concerned about the residential pivuum ...... 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 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: Instructions (a) Compute the activity-based overhead rates for each of the three cost pools, and determine the overhead cost assigned to each product line. (b) Compute the operating income for each product line, using the activity-based overhead rates. (c) What do you believe Peggy Kingman should do