We-Clean, Inc., is a home-cleaning service. It originally specialized in serving small residential clients but recently started contracting for work in large apartment and office buildings. Julie Lodge, the owner, believes that the commercial sector has more growth opportunities and is considering dropping the residential service. Twenty cleaning employees worked a total of 41,000 hours last year, 24,000 on residential jobs and 17,000 on commercial jobs. Wages were $15 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, Julie can charge $32 per hour for residential work, but only $28 per hour for commercial work. Required: (a) If overhead for the year was $137,228, what were the profits of the commercial and the residential services using labor-hours as the allocation base? (Do not round intermediate calculations. Round "Profit" to the nearest whole dollar.) Profit Commercial Residential (b) Overhead consists of costs of traveling, using equipment, and using supplies, which can be traced as follows: Cost Driver Volume Cost Driver Commercial Residential Activity Traveling Using equipment Using supplies Cost 14,868 35,960 86,400 Number of clients served 14 45 Equipment hours Area serviced in square yards 3,800 160,000 2,000 80,000 $137,228 Total overhead Recalculate profits for commercial and residential services based on these activity bases. (Do not round intermediate calculations. Round "Profit" to the nearest whole dollar.) Profit Commercial Residential