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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

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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 $301,700 $475,000 Direct materials costs $30,500 $50,000 Direct labor costs 103,300 310,500 Overhead costs 92,100 225,900 150,000 510,500 Operating income (loss) $ 75,800 $135,500) 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 Cost Drivers Scheduling and travel Setup time Supervision Estimated Overhead $95,500 90,100 56,500 Hours of travel Number of setups Direct labor cost Expected Use of Cost Drivers per Product Commercial Residential Scheduling and travel 820 500 Setup time 370 200 Compute the activity based overhead rates for each of the three cost pools. (Round answers to 2 decimal places, s. 1225) Compute the activity based overhead rates for each of the three cost pools. (Round answers to 2 decimal placeses. 12.25.) Overhead Rates Scheduling and travel $ Setup time Supervision eTextbook and Media Determine the overhead cost assigned to each product line. (Round answers to decimal places, eg. 1.575.) Commercial Residential Scheduling and travel $ Setup time Supervision Total cost assigned 1 e Textbook and Media Compute the operating income for each product line, using the activity-based overhead rates. (Round answers to decimal pla Operating income (loss) Commercial $ Residential $ e Textbook and Media

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