We - We-Clean, Inc., is a home-cleaning service. It...

This preview shows page 1 - 2 out of 3 pages.

The preview shows page 1 - 2 out of 3 pages.
We-Clean, Inc., is a home-cleaning service. It originally specialized in serving small residentialclients but recently started contracting for work in large apartment and office buildings. JulieLodge, the owner, believes that the commercial sector has more growth opportunities and isconsidering dropping the residential service.Twenty cleaning employees worked a total of 40,000 hours last year, 23,000 on residentialjobs and 17,000 on commercial jobs. Wages were $16 per hour for all work done. Any materialsused are included in overhead as supplies. All overhead is allocated on the basis of labor-hoursworked, which is also the basis for customer charges. Because of increased competition forcommercial accounts, Julie can charge $33 per hour for residential work, but only $26 per hourfor commercial work.Required:(a)If overhead for the year was $125,406, what were the profits of the commercial and theresidential services using labor-hours as the allocation base?(Do not round intermediate

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Spring
Professor
Lundblad
Tags
Cost Accounting, Imperial units, Square yard, Cubic yard, square yards, nearest whole dollar

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture