Lathy Elson owns a landscape maintenance service that has two major segments, residential and commercial. Lathy is trying to decide whether she should use traditional costing or activity-based costing for the purpose of allocation of overhead costs, so she develops the following estimates for her analysis and asks you to help. Residential Commercial Total Annual revenues 410,000 1,100,000 1,510,000 Annual labor costs 230,000 350,000 580,000 Hours of operation 19,000 79,000 98,000 Travel time, in hours 4,000 19,000 23,000 The business has overhead costs for equipment maintenance, transportation, and general activities of $700,000, as follows: Cost Pool ......... ..... Cost Pool Amount Cost Driver ............" Hours of equipment Equipment Maintenance 280,000 operation Transportation 170,000 Travel time General Activities 250,000 Labor cost Required: A. Using activity-based costing, determine the overhead rates for each activity. B. Using activity-based costing, allocate the overhead costs to each segment. C. What is the income for each segment assuming the company uses activity-based costing? ...... D. What are your general and specific recommendations to Lathy? Your answers to this open-ended assignment should be placed in the space below this line. A Cost Cost in Cost Driver Per Pool Units Unit Equipment maintenance Transportation General activities ...j.. B Activity Rate Residential Commercial Total ............... Equipment maintenance Transportation General activities Total Overhead ..... C Residential Commercial Total Revenues ...... Labor costs Overhead costs ............ ....... ....." Income ...j.... ...... ...... D Double click and enter your response here