Assignment Chapters 8, 9 and 13 6 Saved Help 9 5 points 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. Twenty employees worked a total of 40,000 hours last year, 28,000 on residentiat jobs and 12,000 on commercialjobs. 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, EL&P can charge $32 per hour for residential work, but only $29 per hour for commercial work. Required: a. If overhead for the year was $156,990, 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 ook References Activity Traveling Using equipent Uning supplies total overhead cont Driver Number of clients served Equipment hours Ares serviced in square yards Cost $16.120 40,870 100,000 $156,990 Cost Driver Volume Commercial Residential 17 45 4,000 2.100 160,000 90,000 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) Revenue Direct Labor Overhead Commercial Residential $ 345,000 5 890,000 180.000 420,000