Question: Please use a table or excel so I can clearly see exactly where I'm messing up at. Thank you. Venus Creations sells window treatments (shades,

Please use a table or excel so I can clearly see exactly where I'm messing up at. Thank you. Please use a table or excel so I can clearly see exactlywhere I'm messing up at. Thank you. Venus Creations sells window treatments

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 $359,500 $464,000 Direct materials costs $45,000 $50,000 Direct labor costs 140,000 260.000 Overhead costs 94,500 279,500 184.000 494,000 Operating income (loss) $80,000 $(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 accurate product costing model can be developed. Here are the three activity cost pools and related information she developed: Estimated Overhead Activity Cost Pools Cost Drivers Scheduling and travel $94,500 Hours of travel Setup time 84.000 Number of setups Supervision 100,000 Direct labor cost Estimated Use of Cost Drivers per Product Commercial Residential Scheduling and travel 700 800 Setup time 350 250 Determine the overhead cost assigned to each product line. Commercial Residential Scheduling and travel $ $ Setup time $ $ Supervision $ $ Total cost assigned $ $ e Textbook and Media X Your answer is incorrect. Compute the operating income for each product line, using the activity-based overhead rates. Operating income (loss) Commercial $ Residential $

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!