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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				$ 302,600				$ 481,000
Direct materials costs		$ 30,900				$ 50,500
Direct labor costs		104,900				312,500
Overhead costs		82,600		218,400		150,000		513,000
Operating income (loss)				$ 84,200				$( 32,000)

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		Estimated Overhead				Cost Drivers
Scheduling and travel			$ 90,500			Hours of travel
Setup time			78,600			Number of setups
Supervision			63,500			Direct labor cost

Expected Use of Cost Drivers per Product
		Commercial				Residential
Scheduling and travel			750				600
Setup time			360				290

Correct answer iconYour answer is correct.

Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. 12.25.)

		Overhead Rates
Scheduling and travel		$
Setup time		$
Supervision			%

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Incorrect answer iconYour answer is incorrect.

Determine the overhead cost assigned to each product line. (Round answers to 0 decimal places, e.g. 1,575.)

		Commercial		Residential
Scheduling and travel		$		$
Setup time		$		$
Supervision		$		$
Total cost assigned		$		$

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eTextbook

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is incorrect.

Compute the operating income for each product line, using the activity-based overhead rates. (Round answers to 0 decimal places, e.g. 1,575.)

		Operating income (loss)
Commercial		$
Residential		$

- Grades Venus Creations sells window treatments shades, blinds and awnings to both commercial and residential customers. Ihe following information relates to its hurlgrted operations for he rurrent yrar. Residential 302 400 $4B1.000 Direct materials costs Diret labor costs Overhcad costs Operating income loss) 30900 104,900 82600 $50,500 312,500 150,000 218400 81.200 513,000 32.000) The controller, Peary Kineman, is concerned about the residential product line. She cannot understand why this line is not more profitable fiven that the installations of window covcrings are less complex for residantial customers, In addition, the residential client base residos in close proximity to tha company cr r so trave costs are not as expensive on per client visit or residential customers. As a result shhas der:n ed to take riser laak at the uver head Lustsassigned Lu Lhe lv u roduLL lines lo deler "ine whethe'more accurate p' uduel usLing model Lan be developed. I ler e are the u " ee activity cost pools and related information she developed: 2 Cost Pools Estimated Overhead Cost Drivers Scheduling and travel Setup Lire 90500 Hours of travel 7B.600 Number of selupps 63500 Direct labor cost Budy eter PTSD Squ Expected Usc of Cost Drivers per Product Commercial Residential Scheduling and travel Setup Lire 600 360 290 Compute the activity-based over head rates for eachof the three cost pools. (Round answers to 2 decimal places, eg. 1225.) Overhead Rates O lype hene to search