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 38,100 hours last year, 25,400 on commercial jobs and 12,700 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:

If overhead for the year was $342,660, 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.

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

Activity	Cost Driver	Cost	Cost Driver Volume
Commercial	Residential
Supervision	Number of clients served	$ 42,420	20	64
Equipment depreciation and lease	Equipment hours	158,000	3,000	2,000
Miscellaneous supplies	Area serviced in square yards	142,240	76,000	36,000
Total overhead		$ 342,660

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

Note: Round intermediate calculations to 2 decimal places.