How do I do the last question that are boxed in red? I really can't figure it out. Could you also double check if everything else is right? Thank you!

Question 3 Sheffield 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 $317,500 $557,000 Direct materials costs $30,000 $50,000 Direct labor costs 120,000 280,000 Overhead costs 97,500 247,500 257,000 587,000 Operating income (loss) $70,000 $(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. 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: Estimated Activity Cost Pools Overhead Cost Drivers Scheduling and travel $97,500 Hours of travel Setup time 117,000 Number of setups Supervision 140,000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 750 750 Setup time 400 250 Your answer is partially correct. Try again. 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 travel 65 per hour Setup time 180 per setup Supervision $ 0.35 per dollarYour answer is correct. Determine the overhead cost assigned to each product line. Commercial Residential Scheduling and travel 48750 48750 Setup time 72000 45000 Supervision 42000 98000 Total cost assigned 162750 191750 SHOW SOLUTION LINK TO TEXT VIDEO: SIMILAR EXERCISE x Your answer is incorrect. Try again. Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) x Commercial 70000 Residential 30000 Click if you would like to Show Work for this question: Open Show Work