Ver Creations set window treatments hades, and we to both commercial and residential customers. The following informations to its buttede for the current Commercial Direct materials cons Direct labore Overhead costs Operating income $300.000 $420,000 $50,000 $50.000 200.000 78.000 2400 120.000 450.000 $10.000 The controller Pesarme concerned about the restenShe cannot understand why this tine is not more profitable that the institution of window covering completo de customers. addition, the residential client base resides in de proximity to the company other, so travel costs are not as expensive ona per cent visit for residentes are the decided to take a look at the head signed 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 Setup time Supervision Overhead Cost Drivers $78,000 Hours of travel 20,000 Number of setups 40,000 Director cost Estimated Use of Cost Drivers per Product Commercial Residential 750 550 GOM Compute the activity based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, eg.0.38.) Overhead Rates Scheduling and travel $ per dollar Setup time $ per setup Supervision $ per dollar Determine the overhead cost assigned to each product line. Commercial Residential Scheduling and travel $ Setup time $ $ Supervision 5 5 Total cost assigned S Compute the operating income for each product line, using the activity based overhead rates. Operating income (loss) Commercial Residential $