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Elite Lawn & Plowing (EL&P) is a lawn and snow plowing service with both residential and commercial clients. The owner believes that the commerciai sector has more growth opportunities and is considering dropping the residential service. Twenty employees worked a total of 47,000 hours last year, 30,000 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, EL&P can charge $36 per hour for residential work, but only $27 per hour for commercial work a. t overhead for the year was $121,280, what were the profts of the residential and the commercial services using labor-hours as the allocation base? (Do not round intermediate calculations.) Required Profit Commercial Residential b. overhead consists of costs of traveling to the ste, using equipment (nciuding vehicle renta), and using supplies, which can be traced as follows Cost Driver Volume Cost Commercial Residential $ 17,360 33,920 70,000 120,000 $ 121,280 Cost Driver Activity Traveling Using equipment Using supplies 50 12 3,400 Number of clients served Equipment hours Area serviced in square yards 1.900 80,000 Total overhead Recalculate profts for commercial and residential services based on these activity bases (Do not round intermediate calculations.) Profit Commercial Residential

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