Venus Creations sells window treatment (shades, blinds, and awnings) to both commercial and residential customers. The following infomration relates to its budgeted operations for the current y ear.

	Commercial		Residential
Revenues		$300,000		$480,000
Direct materials costs	$30,000		$50,000
Direct labor costs	$100,000		$300,000
Overhead costs	$85,000	$215,000	$150,000	$500,000
Operating income (loss)		$85,000		$(20,000)

The controller, Peggy 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 $85,000 hours of travel

Setup time $90,000 number of setups

Supervision $60,000 Direct labor cost

Estimated Use of Cost Drivers per Product

Commercial Residential

scheduling and travel 750 500

setup time 350 250

(a1) compute the activity based overhead rates for each of the three cost pools rounded to 2 decimal places

Overhead Rates

scheduling and travel _________________ per hour

setup time _________________ per setup

supervision _________________ per dollar