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I am unsure how to calculate the Supervision overhead rate. I usually use Direct Labor divided by Estimated Overhead to determine overhead costs but since
I am unsure how to calculate the Supervision overhead rate. I usually use Direct Labor divided by Estimated Overhead to determine overhead costs but since they provide two amounts for Direct Labor (one for residential and one for commercial) I was unsure if I should add them both and then divide by the Estimated Overhead of 67,500 provided for Supervision.
El Exercise 17714 (Part Level Submission) . Google Chrome 7 X 0 Secure l https://edugen.wileypluscom/edugen/shared/aSSignment/test/qprintuni Q *Exeroise 17-14 (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. Revenues $300,700 $483,000 Direct materials costs $29,500 $50,500 Direct labor costs 100,400 289,500 Overhead costs 90 900 220 800 150 000 490 000 Operating income (loss) $79 900 g 7 000 The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more protable 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: Scheduling and travel $86,500 Hours of travel Setup time 86,900 Number of setups Supervision 67,500 Direct labor cost Expected Use of Cost ers per Prod Scheduling and travel 940 600 Setup time 350 230 *(al) Your answer is partially correct. Try again. Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, 63.51. 12.25.) Scheduling and travel Setu p time Supervision Attempts: 4 of 5 usedStep by Step Solution
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