Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commercial sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 35,000 hours last year 25,000 on residential jobs and 10,000 on commercial jobs. Wages were $15 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, EL&P can charge $33 per hour for residential work, but only $26 per hour for commercial work Required: a. If overhead for the year was $116,230, 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 Activity Traveling Using equipment Using supplies Total overhead Cost Driver Number of clients served Equipment hours Area serviced in square yards Cost $ 16,380 36,550 63.000 $116,230 Cost Driver Volume Comercial Residential 13 se 3,480 2,100 120.000 68,000 Recalculate profits for commercial and residential services based on these activity bases (Do not round Intermediate calculations. Round final answers to the nearest whole dollar) Commercial Residential a. II overeau 10 me year was 5110,230, what were uie promis or used and commercial Services using ours 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. Cost Driver Volume Activity Cost Driver Cost Comercial Residential Traveling Number of clients served $ 16,350 Using equipment Equipment hours 36,850 2,100 Using supplies Area serviced in square yards 63.000 120,000 60,000 Total overhead $116,230 50 13 3,400 Recalculate profits for commercial and residential services based on these activity bases. (Do not round intermediate calculations. Round final answers to the nearest whole dollar) Commercial Residential Revenue Direct Labor Overhead Profit Total Overhead Profit b