*Exercise 4-14 a 1-a2, b (Video) (Part Level Submission) 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. Commercial Residential Revenues $365,000 $474,000 Direct materials costs $40,000 $50,000 Direct labor costs 140,000 260,000 Overhead costs 120,000 300,000 184,000 494,000 Operating income (loss) $65,000 $(20,000) 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 Supervision Estimated Overhead $120,000 144,000 40,000 Cost Drivers Hours of travel Number of setups Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 800 700 Setup time 550 250 *(a1) Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.) Overhead Rates Scheduling and travels per dollar Setup time per setup Supervision per dollar Attempts: 0 of 3 used *(a2) The parts of this question must be completed in order. This part will be available when you complete the part above. *(b) The parts of this question must be completed in order. This part will be available when you complete the part above