Blossom and Sandhill is a public accounting firm that offers two primary services: auditing and tax return preparation. A controversy has developed between the partners of the two service lines regarding who is contributing the greater amount to the bottom line. The area of contention is the assignment of overhead. The tax partners argue for assigning overhead on the basis of 40% of direct labour dollars, while the audit partners argue for implementing activity-based costing. The partners agree to use next year's budgeted data for analysis and comparison. The following overhead data are collected: Activity Cost Pools Employee training Typing and secretarial Computing Number of minutes Facility rental Travel Cost Drivers Direct labour dollars Number of reports and forms Number of employees Per expense reports Estimated Overhead $208,740 70,000 Use of Cost Drivers per Service Estimated Use of Cost Drivers Audit $900,000 600 25,000 Tax $1,739,500 $839,500 2,500 1,900 210,000 60,000 35,000 125,160 40 22 18 81,900 Direct 56,700 25,200 $695,800Using traditional product costing as proposed by the tax partners, calculate the total overhead cost assigned to both services (audit and tax) of Blossom and Sandhill. Overhead assigned to audit: $ $ Overhead assigned to tax:1. Using activity-based costing, prepare a schedule showing the calculations of the activity-based overhead rates (per cost driver). (Hint: As a result of breaking out travel costs as a separate cost pool, travel costs can now be traced directly to services provided. Thus, an overhead rate is not needed.) (Round answers to 2 decimal places, e.g. 15.25.) Activity-based overhead rates $ Employee training Typing and secretarial $ per DL dollar per report/form Computing $ per minute Facility rental $ per employee2. Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. Audit Tax Training $ $ Typing and secretarial Computing Rent Travel (Direct) Total overhead assigned $ $