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Swifty Creations sells window treatments shades, blinds, and awnings) to both commercial and residential customers. The following Information relates to its budgeted operations for the

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Swifty 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 $315,000 Residential 5404.000 $50,000 250,000 Revenues Direct materials costs Direct labor costs Overhead costs Operating income loss) $30,000 150.000 75.000 255,000 124.000 424.000 $ 60,000 $[ 20,000) The controller, Pesty Kingan, is concerned about the residential product line. She cannot understand why this line is not more profitable given that the inaltations 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 ona 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 Scheduling and travel $75.000 Setup time 84.000 Supervision 40,000 Cost Drivers Hours of travel Number of setups Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential 700 Scheduling and travel Setup time 550 350 250 Compute the activity based overhead rates for each of the three cost pools. Roundworst 2 decimales 03) Overhead Rates Scheduling and travel $ per hour Setup time per setup Supervisor Der dollar Compute the activity-based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, s. 0.38) Overhead Rates Scheduling and travel S per hour Setup time per setup Supervision per dollar e Textbook and Media Determine the overhead cost assigned to each product line Commercial Residential Scheduling and travel $ $ Setup time $ $ Supervision 5 $ Total cost avigned $ e Textbook and Media Compute the operating income for each product line using the activity based overhead rates Operating incomelloss) Commercial 5 Residential e Textbook and Media

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