Return to question 1 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. 10 points Twenty employees worked a total of 41,000 hours last year, 28,000 on residential jobs and 13,000 on commercial jobs. Wages were $17 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. Because of increased competition for commercial accounts, EL&P can charge $37 per hour for residential work, but only $28 per hour for commercial work. Required: a. If overhead for the year was $152,230, 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. Cost Cost Driver Volume Commercial Residential 14 45 $ 14,750 Cost Driver Number of clients served Equipment hours Area serviced in square yards 41,480 Activity Traveling Using equipment Using supplies Total overhead 3,800 2,300 96,000 150,000 90,000 $152,230 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.) a X Answer is not complete. Commercial Residential Revenue $ 364,000 $ 1,036,000 Direct Labor 221,000 476,000 Overhead 48,268 103,962 Profit $ 94,732$ 456,038 Total Overhead Profit b