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 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 $711000 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 Employee training Typing and secretarial Computing Facility rental Travel $ eTextbook and Media Estimated Overhead Expected Use of Cost Drivers per Activity 195525 Direct labor dollars 76200 Reports/forms $ 216000 Minutes $ 142000 Employees $ 81275 Direct Activity-B Overhead F Direct ty-based costing, prepare a schedule showing the computations of the activity-based overhead rates (per cost driver). head rates to 2 decimal places, eg. 12.25.) mated rhead 195525 76200 216000 142000 Expected Use of Cost Drivers per Activity Direct labor dollars Reports/forms +A Minutes $ 81275 Direct ok and Media Employees $ Activity-Based Overhead Rates per DL dollar Direct per report/form per minute per employee