Elite Lawn & Plowing (EL&P) Is a lawn and snow plowing service with both residentlal and commerclal clients. The owner belleves that the commerclal sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 41,000 hours last year, 29,000 on residential jobs and 12,000 on commercial jobs. Wages were $14 per hour for all work done. Any materials used are included In overhead as supplies. All overhead Is allocated on the basls of labor-hours worked, which is also the basis for customer charges. Because of increased competition for commerclal accounts, EL&P can charge $35 per hour for residential work, but only $28 per hour for commercial work. Requlred: a. If overhead for the year was $138,480, what were the profits of the residentlal and commerclal 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. Cost Driver Volume Activity Traveling Using equipment Using supplies Cost Driver Commercial Residential Cost $ 17,420 35,968 Number of clients served 5e 17 Equipment hours Area serviced in square yards 3,7ee 2,1ee 150, eee 8e,eee 85,10e $138,480 Total overhead Recalculate profits for commercial and residentlal services based on these activity bases. (Do not round intermedieate calculations. Round final answers to the nearest whole dollar.) Residential Commercial Revenue a. Direct Labor Overhead Profit b. Total Overhead Profit