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. Revenues Direct materials costs Direct labor costs Overhead costs Operating income (los) Commercial Residential $342.000 $477,000 $35,000 $50,000 120,000 280,000 102.000 257,000 172,000 502,000 $85.000 $125.000) The controller Pessy 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 ona 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 Activity Cost Pools Overhead Cost Drivers Scheduling and travel $102.000 Hours of travel Setup time 112,000 Number of setups Supervision 60,000 Direct labor cost Scheduling and travel Setup time Commercial 700 450 Residential 800 250 (al) Your Answer Correct Answer (Used) Compute the activity based overhead rates for each of the three cost pools (Round overhead rate for supervision to 2 decimal places, 63.0.38.) Overhead Rates Scheduling and travel 5 18 per dollar Setup time $ 100 per setup Supervision $ 0.15 Der dollar (a2) Your answer is correct. Determine the overhead cost assigned to each product line. Residential Commercial 47600 Scheduling and travel $ 54400 72000 $ 10000 Setup time Supervision 18000 42000 137600 Total cost assigned 136.000 Attempts: 1 of 3 used (b) Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) $ Commercial Residential $ Suve for Later Attempts: 0 of 3 used Submit