Question 2 of 5 > -/3 = Lily 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 $388,550 Revenues $562.000 Direct materials costs $30,000 $50.000 Direct labor costs 130,000 270,000 143.550 303,550 262.000 Overhead costs Operating income (loss 582.000 $85.000 $ 20,000) The controller Peegy 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 ellent 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 signed to the product lines to determine whether a more Sccurate product costing model can be developed. Here are the three activity cost pool and related information she developed Activity Cost Pools Estimated Overhead Cost Drivers Scheduling and travel 5143550 Hours of travel 102000 Number of setups Setuoti Supervision 100.000 Director cost (a1) Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, es. 0.38) Overhead Rates Scheduling and travel S Der hour Setup time persetud Supervision per dollar e Textbook and Media Question 2 of 5 > -/3 = Lily 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 $388,550 Revenues $562.000 Direct materials costs $30,000 $50.000 Direct labor costs 130,000 270,000 143.550 303,550 262.000 Overhead costs Operating income (loss 582.000 $85.000 $ 20,000) The controller Peegy 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 ellent 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 signed to the product lines to determine whether a more Sccurate product costing model can be developed. Here are the three activity cost pool and related information she developed Activity Cost Pools Estimated Overhead Cost Drivers Scheduling and travel 5143550 Hours of travel 102000 Number of setups Setuoti Supervision 100.000 Director cost (a1) Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, es. 0.38) Overhead Rates Scheduling and travel S Der hour Setup time persetud Supervision per dollar e Textbook and Media
