Heidt Cleaning Services $($HCS$)$ is a local custodial service company serving both the residential and commercial markets. The owner is considering dropping the commercial clients because that business seems only marginally profitable.

Twenty$-$five employees worked a total of $44,100$ hours last year, $29,400$ on commercial jobs and $14,700$ on residential jobs. Wages were $$20$ per hour for all work done. Any materials used are included in overhead as supplies. All overhead is allocated on the basis of labor$-$hours worked, which is also the basis for customer charges. Given current economic conditions and competition, HCS bills residential clients $$40$ per hour and commercial clients $$30$ per hour.

Required:

a$.$ If overhead for the year was $$394,260,$ what were the profits of the residential and commercial services using labor$-$hours as the allocation base?

Note: Do not round intermediate calculations. Round final answers to the nearest whole dollar.

b$.$ Overhead consists of costs of supervision, equipment used $($including vehicle rental$),$ and supplies used, which can be traced as follows:

$\backslash$table$[[,,$Cost Driver Volume,$],[$Activity$,$Cost Driver,Cost,Commercial,Residential$],[$Supervision$,$Number of clients served,$46,620,64,],[$Equipment depreciation and lease,Equipment hours,$183,000,3,000,2,000],[$Miscellaneous supplies,Area serviced in square yards,$164,640,76,000,36,000],[,,,,]]$

Recalculate total overhead and profits for commercial and residential services based on these activity bases.

Note: Round intermediate calculations to $2$ decimal places.

$\backslash$table$[[,$Commercial,Residential$],[$a$.$ Revenue,$$,882,000,$$$,588,000],[$a$.$ Direct Labor,,$588,000,,294,000],[$a$.$ Overhead,,,,$],[$a$.$ Profit,,,,$],[$b$.$ Total Overhead,,,,$],[$b$.$ Profit,,,,$]]$