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 $375,500 $546,000 Direct materials costs $30,000 $50,000 Direct labor costs 140,000 260,000 Overhead costs 130,500 300,500 256,000 566,000 Operating income (loss) $75,000 $(20,000) 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 Scheduling and travel Estimated Overhead Cost Drivers $130.500 Hours of travel Setup time 96,000 Number of setups Supervision 160,000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 800 650 Setup time 550 250 (a1) Your answer is partially correct Compute the activity-based overhead rates for each of the three cost pools. Scheduling and travel Setup time Supervision Overhead Rates 10 per hour 120 per setup 096 N Scheduling and travel $130,500 Hours of travel Setup time 96,000 Number of setups Supervision 160,000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 800 650 Setup time 550 250 (a1) Your answer is partially correct. Compute the activity-based overhead rates for each of the three cost pools. Overhead Rates Scheduling and travel $ 90 per hour Setup time Supervision LA 120 per setup 0.40 %