Sorry it's bad quality, but did I do this correctly? Thank you!
Venus Creations sells window treatments (shades, blinds, and wings) to both commercial and residential customers. The following information relates to its budgeted operations for the current year. Commercial Residential Revenues 5359,500 $464,000 Direct materials costs $45,000 $50,000 Direct labore 240,000 260,000 Overhead coa 14,500 279,500 164,000 44.000 Operating income (oss) 560,000 SC07000) The controler, Peggy Kingnan, is concemed about the residential product line. She cannot understand why this ine is not more profesble given that the installations of window coverings are less complex for residential customers. In addition, the residential clert trase resides in close proximity to the company office to travel costs are not as expensive ana per dient visit for residenti 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 casting model can be developed. Here are the three activity cost pools and related information she developed Estimated Activity Cost Pools Overhead Cost Drivers Scheduling and travel SP-2500 Hours of travel Setup time 14.000 Number of Supervision 100.000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 700 Setup time Compute the activity-based overhead rates for each of the three cost pook. (Round everhend rate for supervision to 2 decimal places, 0.9.0.38.) Overhead Rates Scheduling and travel per dollar Setup time per setup Determine the overhead cos assigned to each product line Commercial Residential Scheduling and travel.100 50.400 Setup time 19.000 35.000 Supervision 35.000 Total cost assigned 128.100 150,400 Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) Commercial 46,400 Residential 3,600