Waterway 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. Residential Commercial $342,800 Revenues $455,000 $45,000 $50,000 140,000 260,000 Direct materials costs Direct labor costs Overhead costs Operating income (loss) 92,800 277,800 165,000 475,000 $65,000 $120,000) 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 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 Estimated Overhead Cost Drivers $92,800 Hours of travel 105,000 Number of setups 60,000 Direct labor cost Supervision Estimated Use of Cost Drivers per Product Commercial Residential 700 750 Scheduling and travel Setup time 450 250 (a 1) Compute the activity-based overhead rates for each of the three cost pools. (Round overhead rate for supervision to 2 decimal places, e.g. 0.38.) Overhead Rates per hour Scheduling and travel $ Setup time $ per setup Supervision $ per dollar