Bramble 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
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
Estimated Overhead
Cost Drivers
Commercial
Residential
(a1)
Compute the activity-based overhead rates for each of the three
cost pools. (Round answers to 2 decimal places,
e.g. 0.38.)
Overhead Rates
Scheduling and travel
$enter a dollar amount per hour rounded to 2 decimal
places
Setup time
$enter a dollar amount per setup rounded to 2 decimal
places
Supervision
$enter an amount per dollar rounded to 2 decimal
places
Bramble Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers. Th
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