Sunland 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.

		Commercial				Residential
Revenues				$336,250				$450,000
Direct materials costs		$30,000				$50,000
Direct labor costs		120,000				280,000
Overhead costs		86,250		236,250		175,000		505,000
Operating income (loss)				$100,000				$(55,000)

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 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				Cost Drivers
Scheduling and travel			$86,250			Hours of travel
Setup time			135,000			Number of setups
Supervision			40,000			Direct labor cost

Estimated Use of Cost Drivers per Product
		Commercial				Residential
Scheduling and travel			750				500
Setup time			500				250

Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, e.g. 0.38.)

		Overhead Rates
Scheduling and travel		$enter a dollar amount per hour rounded to 2 decimal places	per hour
Setup time		$enter a dollar amount per setup rounded to 2 decimal places	per setup
Supervision		$enter an amount per dollar rounded to 2 decimal places	per dollar

Determine the overhead cost assigned to each product line.

		Commercial		Residential
Scheduling and travel		$enter a dollar amount		$enter a dollar amount
Setup time		$enter a dollar amount		$enter a dollar amount
Supervision		$enter a dollar amount		$enter a dollar amount
Total cost assigned		$enter a total amount		$enter a total amount

Compute the operating income for each product line, using the activity-based overhead rates.

		Operating income (loss)
Commercial		$enter a dollar amount
Residential		$enter a dollar amount