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 or the basis of 40% of direct abor dollars, while the audit partners argue for plementing b tv ity bated costing. The partners agree touse next year's budgeted data orbit eses o analysis and companison. The following overhead data are collected to develop the comparison. Expected Use of Cost Drivers per Service Expected Use of Estimated Overhead Activity Cost Pools Employee training Typing and secretarial Computing Facility rental Travel Cost Drivers Audit Tax Direct labor dolars Number of reports/forms Number of minutes Number of employees Per expense reports $250,250 76,800 161,650 145,000 $1,787,500 $1,172,000 $615,500 800 1,700 60,00027,000 33,000 18 Direct 56,000 25,300 2,500 40 $715,000 Using tradtional 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 Total overhead cost assigneds using activity-based costing, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rate to 2 decimal places, e.9. 12.2S) Estimated Overhead Expected Use of Cost Drivers per Activity Activity-Based Overhead Rates Activity Cost Pools Employee traihing Typing and secretarial Computing Faciity rental Travel ] Direct lebor dollars per DL dollar per reportform per minute per employee Reports/forms Minutes Direct Direct LINK TO TEXT LINK TO TEXT LNK TO TEXI LENK TO TEXT Prepare , schedule assigning each acdtvity's overhead cost pool to each service based on the use of the cost drivers, (Round overhead rate to 2 decimal places, ea. 1z.as and cost assigned to 0 decinmal places, e.g2500) Expected Use of Cost Drivers Cost Assigned..- Overhead RatesCost Assigned overhead Rates Activity Cost Pool-. Employee tra ning Typing and secretarial Cost Drivers in Facility renta Direct Direct overhead costs assigned VIDEO SIMILAR PROBLEM INK TO TEXT LINK TO TEXT LINK TO TEXCT LINK TO TEXT