Venus 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.

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:

Compute the activity$-$based overhead rates for each of the three cost

pools, and determine the overhead cost assigned to each product

line

Compute the operating income for each product line, using the

activity$-$based overhead rates.