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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

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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 33.000 hours last year, 22,000 on residential jobs and 11,000 on commercialjobs. Wages were $14 per hour for all work done. Any matertals 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 $35 per hour for residential work, but only $29 per hour for commercial work Required: a. If overhead for the year was $112.470, 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 Equipent hours Area Surviced in square yards Cost $15.000 38,190 50,200 $112.470 Cost Driver Volume Commercial Residential 13 45 3,300 2.400 100,000 00.000 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 Revenue Direct Labor Overband Profit Total Overhead Profit b

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