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	$304,600	$480,000
Direct materials costs	$30,900	$51,000
Direct labor costs	111,400	297,500
Overhead costs	93,800	236,100	151,000	499,500
Operating income (loss)	$68,500	$(19,500)

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	Estimated Overhead	Cost Drivers
Scheduling and travel	$80,000	Hours of travel
Setup time	114,800	Number of setups
Supervision	50,000	Direct labor cost

Expected Use of Cost Drivers per Product
Commercial	Residential
Scheduling and travel	850	600
Setup time	440	200