# Compute The Operating Income For Each Product Line Using The Activity Based Overhead Rates

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Compute the operating income for each product line, using the activity- based overhead rates. Round answers to 0 decimal places, e.g. \$2,512. Commercial Operating income \$ 32149 Solution : a Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers = ABC Overhead Rate Scheduling and travel .Commercial Residential Scheduling and travel \$ 69,401 \$ 34,700 Setup time \$ 45,361 \$ 25,639 Supervision \$ 18,785 \$ 49,215 Total assigned costs \$ 133,547 \$ 109,554 c Compute the operating income for each product line, using the activity-based overhead rates. Round answers to 0 decimal places, e.g. \$2,512. .Compute the operating income for the each product line, using the activity-based overhead rates. Commercial \$ Residential \$ Explanation Comm ercial Residential Revenues \$302,800 \$476,300 Direct material costs 30,700 51,000 Direct labor costs 99,500 300,100 Overhead costs 113,605 243,805 86,557 437,657 .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, .

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