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 $317.500 $557,000 $30,000 $50,000 Direct materials costs Direct labor costs 120.000 280,000 Overhead costs 97.500 247.500 257,000 587,000 Operating income (loss $70,000 $130,000) The controller, Peggy Kingman, is concerned about the residential product line. She cannot understand why this line is not more prontable 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 Activity Cost Pools Scheduling and travel $97,500 Cost Drivers Hours of travel Number of setups Setup time 117.000 Supervision 140,000 Direct labor cost Estimated Use of Cost Drivers per Product Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 750 750 Setup time 400 250 Compute the activity-based overhead rates for each of the three cost pools. Overhead Rates Scheduling and travel $ per hour Setup time $ per setup Supervision se Determine the overhead cost assigned to each product line. Commercial Residential Scheduling and travel $ $ $ Setup time $ $ Supervision $ Total cost assigned $ e Textbook and Media Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) Commercial Residential $