8faedfe879d77536e76c15e1f5f95aa7_cd68c6233737880259ee21056f3baa71 - We-Clean Inc is a home-cleaning service It originally specialized in serving small


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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, 30,000 on residential jobs and 11,000 on commercial jobs. Wages were $16 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 $37 per hour for residential work, but only $27 per hour
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