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. Residential Commercial $356,500 Revenues $536,000 $35,000 Direct materials costs Direct labor costs $50,000 140,000 260,000 Overhead costs 91.500 266,500 251,000 561,000 Operating income (loss) $90,000 $(25,000) 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 Estimated Overhead Cost Drivers Activity Cost Pools Scheduling and travel Setup time $91,500 Hours of travel 91,000 Number of setups 160,000 Direct labor cost Supervision Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 800 700 Setup time 450 250 Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, es. 0.38.) Overhead Rates Scheduling and travel I 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 S $ Supervision $ Total cost assigned Compute the operating income for each product line, using the activity-based overhead rates. Operating income (los) Commercial $ Residential $