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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

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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: 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: Your answer is correct. Compute the activity-based overhead rates for each of the three cost pools. Determine the overhead cost assigned to each product line. (b) Majestic. which selis for $1,320. The production cost computed per unit under traditiarsi costing for each modet in 2020 was as follows In 2020, Schultz manuf actured 25,000 units of the Reyale and 10,000 units of the Majestic. The overhead rate of 542 per direct tabor hour wss determined by dividine total estimated manufacturine overhead of 31,392,200 by the total dinect laber hours (200,000) for the two inedek. Under tradtionalcosting, the gross proht on the models was Royale $558 (\$1.580 - $1.022) snd Majente $510($1.320$710). Because of this difference, management is considering phasine out the Rovale inodel and increaving the production of the Mojsatit model. Before finalizing its decision management asks Schulz's cootroller to prepare an analysh ushe activity based costing iAOC1 The controller accumalates the following information about overhesd for the vear ended December 31. 2020. The cest drivers used for exchproduct were: Assien the total 2020 manulacturing owerhead costs to the two products usirg activity based costing WaC and determine the overhesd cost per unit. (Round cost per unit to 2 desind plares, 4 \& 1225 ) Calculate cost per unit of each model using ABC costing. (Round answers to 2 decimal places, eg 12.25)

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