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 $45,300$ hours last year, $30,200$ on commercial jobs and $15,100$ 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:

a$.$ If overhead for the year was $$404,580,$ 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.

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

follows:

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

Note: Round intermediate calculations to $2$ decimal places.