Shady Lady sells window coverings to both commercial and residential customers. The following information relates to its budgeted operations for the current year: Revenues Commercial $300,000 Residential $480,000 Direct material costs $30,000 $70,000 Direct labour costs 100,000 300,000 Overhead costs 55,000 185,000 162,000 532,000 Operating income (loss) $115,000 $(52,000 ) The controller, Susan Chan, is concerned about the residential product line. She cannot understand why this line is not more profitable given that window coverings are less complex to install for residential customers. In addition, the residential client base resides close 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. Following are the three activity cost pools and related information she developed: Activity Cost Pools Scheduling and travel Estimated Overhead Cost Drivers $92,400 Hours of travel Set-up time 69,600 Number of set-ups Supervision 55,000 Direct labour cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 970 680 Set-up time 350 230 Your answer is incorrect. Calculate the operating income for each product line using the activity-based overhead rates. (Enter negative amounts using a negative sign preceding the number e.g. -45. Round answers to O decimal places, e.g. 1,525.) Operating income (loss) SA Commercial 56260 +A $ Residential 6740