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Drivers per Service Estimated Use Estimated of Activity Cost Pools Cost Drivers Overhead Cost Drivers Audit Tax Employee training Direct labor dollars $198,275 $1,802,500 $1,100,000

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Drivers per Service Estimated Use Estimated of Activity Cost Pools Cost Drivers Overhead Cost Drivers Audit Tax Employee training Direct labor dollars $198,275 $1,802,500 $1,100,000 $702,500 Typing and secretarial Number of reports/forms 76,000 2.500 800 1,700 Computing Number of minutes 225,600 60,000 27,000 33,000 Facility rental Number of employees 140,000 40 22 18 Travel Per expense reports 81,125 Direct 56,000 25,300 $721,000 (a) Using traditional product costing as proposed by the tax partners, compute the total overhead cost assigned to both services (audit and tax) of Lewis and Stark. Audit Tax Total overhead cost assigned $ $

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