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: Expected Use of Cost Drivers per Service Activity Cost Pools Employee training Typing and secretarial Computing Facility rental Travel Cost Drivers Direct labour dollars Number of reports and forms Number of minutes Number of employees Per expense reports Estimated Overhead $218,366 75,600 204,960 146,960 82,000 727,886 Expected Use of Cost Drivers $1,819,715 2,700 61,000 Audit $943,000 700 25,400 Tax $876,715 2,000 35,600 18 25,700 44 26 Direct 56,300 *(a) 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. (Round answers to 0 decimal places, e.g. 1525.) Overhead assigned to audit: " Overhead assigned to tax: $N *(b) 1. Using activity-based costing, prepare a schedule showing the calculations of the activity-based overhead rates (per cost driver). (Round answers to 2 decimal places, e.g. 15.25.) Activity-based overhead rates per DL dollar Employee training Secretarial $ per report/form Computing per minute Facility rental per employee Travel 2. Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round answers to o decimal places, e.g. 1525.) Audit Tax Training Secretarial Computing Rent Travel (Direct) Total overhead assigned $L (c) Classify each of the activities as a value-added activity or a non-value-added activity, Employee training Typing and secretarial - Computing Facility rental Travel