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 year's budgeted data for purposes of analysis and comparison. The following overhead data are collected to develop the comparison. Estimated Use of Cost Drivers per Service Activity Cost Pools Employee training Cost Drivers Estimated Overhead Estimated Use of Cost Drivers Audit Tax Direct labor dollars $195,525 $1,777,500 $1,150,000 $627,500 Typing and secretarial Number of reports/forms 76,200 2,500 800 1,700 Computing Number of minutes 216,000 60,000 27,000 33,000 Facility rental Number of employees 142,000 40 22 18 Travel Per expense reports 81.275 Direct 56,000 25,300 $711.000 Using activity-based costing, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). (Round overhead rates to 2 decimal places, eg. 12.25) Activity Cost Pools Estimated Overhead Employee training $ 195525 Typing and secretarial Expected Use of Cost Drivers per Activity Activity-B Overhead F Direct labor 1777500 dollars 76200 2500 Reports/forms 30 Computing 216000 60000 Minutes Facility 142000 rental 40 Employees 35 Travel 81275 Direct Direct $ 711000 eTextbook and Media Attempts: 2 of 3 used Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rates to 2 decimal places, eg. 12.25 and cost assigned to O decimal places, e.g. 2,500.) Audit Estimated Use of Activity-Based Activity Cost Pool Cost Drivers Overhead Rates Cost Assigned Employee training $ Typing and secretarial $ Computing Facility rental Travel Overhead costs assigned eTextbook and Media S $ Direct $ Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rates to 2 decimal places, eg. 12.25 and cost assigned to O decimal places, e.g. 2,500) Tax Estimated Use of Activity-Based Cost Assigned Cost Drivers Overhead Rates $ $ $ Direct Cost Assigned $