nment NEXT 4 BACK FULL SCREEN PRINTER VERSION Exercise 17-14 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. Residential Commercial $297,900 $484,000 Revenues Direct materials costs Direct labor costs $30,100 $49,500 113,600 293,500 236,500 151,000 494,000 Overhead costs 92,800 $(10,000) $61,400 Operating income (loss) 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 Scheduling and travel Cost Drivers Hours of travel $96,000 Number of setups 74,300 Setup time Direct labor cost 73,500 Supervision Expected Use of Cost Drivers per Product Commercial Residential 500 970 Scheduling and travel 410 230 Setup time Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. FULL SCREEN NEXT PRINTER VERSION 4 BACK Commercial Residential Scheduling and travel 970 500 Setup time 410 230 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 LINK TO TEXT Determine the overhead cost assigned to each product line. (Round answers to 0 decimal places, e.g. 1,575.) Residential Commercial Scheduling and travel $ Setup time $ Supervision $ Total cost assigned LINK TO TEXT nment PRINTER VERSION 4 NEXT FULL SCREEN Determine the overhead cost assigned to each product line. (Round answers to 0 decimal places, e.g. 1,575.) Residential Commercial Scheduling and travel Setup time Supervision Total cost assigned UINK TO TT 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 LINK TO TEXY SUBHIT ANSWER SAVE FOR LATER Question Attempts: Unlimited