Rectangular Sip 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 $328,000 $514,000 Revenues $45,000 $50,000 Direct materials costs 110,000 290,000 Direct labor costs Overhead costs 108,000 263,000 199,000 539,000 $65,000 Operating income (loss) $(25,000) 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 produ 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 Activity Cost Pools Cost Drivers Overhead Scheduling and travel $108,000 Hours of travel 119.000 Number of setups Setup time Supervision 80,000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 800 550 Activate Windows Setup time 450 250 Go to Settings to activate Windows Estimated Use of Cost Drivers per Product Rectangular Snip Commercial Residential Scheduling and travel 800 550 Setup time 450 250 Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.) Overhead Rates Scheduling and travel per dollar Setup time per setup Supervision per dollar eTextbook and Media Determine the overhead cost assigned to each product line. Residential Commercial $ $ Scheduling and travel Setup time $ Supervision Activate Windows $ $ Total cost assigned Go to Settings to activate Windows