Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commerical clients. The owner believes that the commercial sectir has growth opportunities and is considering dropping the residential service.

Elite Lawn \& Plowing (EL\&P) is a lawn and snow plowing service with both residential and commercial cients. The owner belleves that the commerclal sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 39,000 hours last year, 23,000 on residential jobs and 16,000 on commercial jobs. Wages were $16 per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis of labor-hours worked, which is also the basis for customer charges. Because of increased competition for commercial accounts, ElsP can charge $37 per hour for residential work, but only $28 per hour for commercial work. Required: a. If overhead for the year was $100,780, what were the profits of the residentlal and commercial services using labor hours as the allocation base? (Do not round intermediate calculations. Round final onswers to the nearest whole dollar.) b. Overhead consists of costs of traveling to the site, using equipment (including wehicle rental), and using supplies, which can be: traced as follows. Recalculate profits for commercial and residential services based on these activity bases. (Do not round intermediote calculations. Round finol answers to the nearest whole dolior.) Required: o. If overhead for the year was $100,780, what were the profits of the residential and commercial services using labor-hours as the allocation base? (Do not round intermediate calculations. Round final answers to the nearest whole dollar.) b. Overhead consists of costs of traveling to the site, using equipment (including vehicle rental), and using supplies, which can be traced as follows. Recalculate profits for commercial and residential services based on these actlilty bases. (Do not round intermediate calculations. Round final answers to the nearest whole doller.)