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 toits budgeted operations for the current year. Revenues Direct materials costs Direct labor costs Overhead costs Operating income (os) Commercial $298,450 $35.000 100,000 88,450 223,450 575,000 Residential $497,000 $50,000 300,000 177.000 527,000 $(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 ona 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 retated information she developed Activity Cost Pools Scheduling and travel Setup time Supervision Estimated Overhead 588.450 117,000 60,000 Cost Drivers Hours of travel Number of setups Direct lobor cost Las