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how do i calculate this? Question 4 of 5 1/3 111 View Policies Show Attempt H tory Current Attempt in Progress Venus Creations sells window

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Question 4 of 5 1/3 111 View Policies Show Attempt H tory Current Attempt in Progress Venus Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. The following information relatest es to its budgeted operations for the current year, Commercial $288.000 Residential $484.000 Revenues $30,000 $50,000 120.000 280,000 Direct materials costs Direct labor costs Overhead costs Operating income (los) 78,000 228,000 184,000 514,000 $60,000 $(30,000) 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. Question 4 of 5 1/3 III 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 be 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 Estimated Overhead Scheduling and travel $78,000 Setup time 84,000 Cost Drivers Hours of travel Number of setups Supervision 100,000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 700 600 Setup time 350 250 Question 4 of 5 1/3 (a 1) Your answer is correct Compute the activity based overhead rates for each of the three cost pools. Overhead Rates Scheduling and travel $ 60 per hour $ 140 Setup time per setup Supervision 25 9 (a2) Determine the overhead cost assigned to each product line. Commercial Residential Scheduling and travel $ $ Setup time $ $ Supervision $ $ Total cost assigned CA $

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