View Policies Current Attempt in Progress 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 $288,000 Residential $484,000 Revenues $30,000 $50,000 Direct materials costs Direct labor costs 120,000 280,000 Overhead costs 78,000 228,000 184,000 514,000 Operating income (loss) $60,000 $(30,000) 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 cataract 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: Estimated Overhead $78,000 Activity Cost Pools Scheduling and travel Setup time Supervision Cost Drivers Hours of travel Number of setups Direct labor cost 84,000 100,000 Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 700 600 Setup time 350 250 (a1) 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 x e Textbook and Media Save for Later Attempts: 0 of 5 used Submit