Hy and van Lamsweerde 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:

Estimated Use of Cost

Drivers per Service

Activity Cost Pools Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Audit Tax

Employee training Direct labour dollars $208,740 $1,739,500 $900,000 $839,500

Typing and secretarial Number of reports and forms 70,000 2,500 600 1,900

Computing Number of minutes 210,000 60,000 25,000 35,000

Facility rental Number of employees 125,160 40 22 18

Travel Per expense reports 81,900 Direct 56,700 25,200

_______

$695,800

Using traditional product costing as proposed by the tax partners, calculate the total overhead cost assigned to both services (audit and tax) of Hy and van Lamsweerde.

Overhead assigned to audit: ????? $

Overhead assigned to tax: ??????$