how do i find the operating income (loss)

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 $288,000 Residential $484,000 Revenues $30,000 $50,000 Direct materials costs Direct labor costs Overhead costs 120,000 280,000 78,000 228,000 184,000 514,000 Operating income foss) $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 dient 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 csult, 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 Overhead $78,000 Activity Cost Pools Scheduling and travel Setup time Supervision Cost Drivers Hours of travel Number of setups Direct labor cost 84.000 100,000 Estimated Use of Cost Drivers per Product Commercial Residential 700 600 Scheduling and travel 350 250 Setup time 121) 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 25 Supervision e Textbook and Media Your answer is correct Determine the overhead cost assigned to each product line Commercial Residential Scheduling and travel S 42000 $ 38000 Setup time $ 49000 $ 35000 Supervision $ 30000 $ 70000 Total cost assigned S 121000 $ 141000 e Textbook and Media (b) X Your answer is incorrect. Compute the operating income for each product line, using the activity based overhead rates. Operating income (loss) Commercial S 60000 Residential s 30000 e Textbook and Media Attempts: 1 of 5 used Submit Answer Save for later