I need assistance with the following question. Please provide complete answers or your response will not assist me. Please ensure your response is legible and easy to understand or it will not assist me.

Problem 18-5A

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 years budgeted data for purposes of analysis and comparison. The following overhead data are collected to develop the comparison.

Expected Use of Cost Drivers per Service Estimated Expected Use of overhead Activity Cost Pools Cost Drivers Cost Drivers Audit Tax Employee training Direct labor dollars $257,600 $1,840,000 $1,143,000 $697,000 Typing and secretarial Number of reports/forms 2,500 76,200 800 1,700 Number of minutes Computing 173,900 60,000 27,000 33,000 Facility rental Number of employees 147,000 40 22 18 81,300 Travel Per expense reports Direct 56,000 25,300 $736,000 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 LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT