Current Attempt in Progress Lewis and Stark 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 as to 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 labor dollars, while the audit partners argue for implementing activity-based costing. The partners agree to use next year's budgeted data for purposes of analysis and comparison. The following overhead data are collected to develop the comparison Estimated Use of Cost Drivers per Service Estimated Use Estimated of Activity Cost Pools Cost Drivers Overhead Cost Drivers Audit Tax Employee training Direct labor dollars $202,400 $1.840.000 $1.191.000 5649,000 Typing and secretarial Number of reports/forms 76.400 2.500 800 1.700 Number of minutes Computing 232 200 60,000 27,000 33,000 144.000 Number of employees Facility rental 22 18. Per expense reports 81.000 Travel 56,000 25,300 5736,000 40 Direct Using traditional product costing as proposed by the taxpartners, compute the total overhead cost assigned to both services audit and tax) of Lewis and Stark Audit 5 5 Total overhead cost asend eTextbook and Media 0 Question 3 of 3 -/5 Using activity-based costing, prepare a schedule showing the computations of the activity based overhead rates (per cost driver) (Round overhead rates to 2 decimal places, eg. 12.25.) Estimated Overhead Activity Cost Pools Employee training Typing and secretarial Expected Use of Cost Drivers per Activity Direct labor dollars Activity Overhead $ $ Reports/forms $ Computing Minutes $ Facility rental Employees $ Travel Direct Direct eTextbook and Media Prepare a schedule assiening each activities.com Boome use of the cost drivers Round overhead rates to 2 decimal places, ex 12.25 and cost signed to O decimal places 2.500) Estimated Use of Cost Driven Audit Activity Based Overhead Rates Cost Assigned Activity Cost Pool eTextbook and Media Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rates to 2 decimal places, c.8. 12.25 and cost assigned to 0 decimal places, eg. 2,500.) Estimated Use of Cost Drivers Audit Activity-Based Overhead Rates Activity Cost Pool Cost Assigned Employee training $ 5 $ Typing and secretarial $ Computing S Facility rental Direct Travel Overhead costs assigned eTextbook and Media Attempts undimited i activity's overhead cost pool to each service based on the use of the cost drivers. (Round eg. 12.25 and cost assigned to 0 decimal places, e.g. 2.500.) Estimated Use of Cost Drivers Tax Activity-Based Overhead Rates Cost Assigned $ $ 4 $ $ Direct dia Attempts: unlimited Submit Answers 3 View Policies Current Attem X 4019-af1a-34bd910bfc45e/question/2 -/5 = prepare a schedule showing the computations of the activity based overhead rates (per cost esto 2 decimal places, es. 12.25) Expected Use of Cost Drivers per Activity Direct labor dollars $ Activity-Based Overhead Rates per DL dollar per report/form Reports/forms $ Minutes $ per minute Emplovees 5 per employee Direct Direct and Media Who comment of the cost drivers. Round 2 12.75 and toned to decimal aces.2.500.3 Act Based Cost Assured