( chi7(Part2) HWK Question 4 of4 6.6 l 25 E View Policies Show Attempt l-i istorv 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 Residential Revenues $ 299.400 3 483.000 Direct materials costs $ 30.300 $49500 Direct labor costs 1 10.600 289,500 Overhead costs 90.700 2 3 1.600 149,000 488,000 Operating income (loss) $ 67.800 $( 5.000) The controller. Peggy Kingma n. is concerned about the residential product line. She cannot understand why this line is not more protable giventhat the installations of window coverings are less complex for residential customers. In addition. the residential client base resides in close proximity to the company ofce. 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 Estimated Overhead Cost Drivers Scheduling and travel 3 88.000 Hours of travel