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Oriole Creations sells window treatments (shades, blinds, and awnings) to both commercial and residential customers....

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Accounting

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Oriole 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. The controller, Pegzy Kingman, is concerned about the residential product line. She camnot 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 ciose prosimity to the company office, so trawel costs are not as expensive con 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 fo determine whether a more accurate product costing model can be developed. Here are the three activity cost poots and related information she developed: Compute the operating income for each product line, using the activity-based overhead rates

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