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.

Commercial

Residential

Revenues $$308,000$ $$420,000$

Direct materials costs $$50,000$ $$50,000$

Direct labor costs

$120,000280,000$

Overhead costs $78,000248,000120,000450,000$

Operating income $($loss$)$ $$60,000$ $$(30,000)$

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 $$78,000$ Hours of travel

Setup time

$80,000$ Number of setups

Supervision $40,000$ Direct labor cost

Estimated Use of Cost Drivers per Product

Commercial

Residential

Scheduling and travel $750550$

Setup time

$550250$

$($a$1)$

Your answer is correct.

Compute the activity$-$based overhead rates for each of the three cost pools. $($Round overhead rate for supervision to $2$ decimal places, e$.$g$.0\mathrm{.}38.)$

Overhead Rates

Scheduling and travel

$enter a dollar amount per dollar rounded to $2$ decimal places

$60$

Correct answer

per dollar

Setup time

$enter a dollar amount per setup rounded to $2$ decimal places

$100$

Correct answer

per setup

Supervision

$enter a dollar amount per dollar rounded to $2$ decimal places

$\mathrm{.}10$

Correct answer

per dollar

eTextbook and Media

Attempts: $1$ of $3$ used

$($a$2)$

Your answer is partially correct.

Determine the overhead cost assigned to each product line.

Commercial

Residential

Scheduling and travel

$enter a dollar amount

$enter a dollar amount

$33000$

Correct answer

Setup time

$enter a dollar amount

$enter a dollar amount

$25000$

Correct answer

Supervision

$enter a dollar amount

$enter a dollar amount

$28000$

Correct answer

Total cost assigned

$enter a total dollar amount

$enter a total dollar amount

$86000$

Correct answer