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 Estimated Estimated Use of Activity Cost Pools Cost Drivers Overhead Cost Drivers Audit Tax Employee training Direct labor dollars $202,675 $1,842,500 $1,161,000 $681.500 Typing and secretariat Number of reports/forms 76,800 2.500 1.700 Computing Number of minutes 232,200 60,000 27,000 33,000 Facility rental Number of employees 144.000 22 18 Travel Per expense reports 81,325 Direct 56,000 25,300 800 40 $737.000 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 $ 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, e.g. 12.25.) Estimated Overhead Expected Use of Cost Drivers per Activity $ Direct labor dollars Activity Cost Pools Employee training Typing and secretarial Computing Facility rental Reports/forms $ SI Minutes $ Employees $ Travel Direct eTextbook and Media 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, c.8. 12.25 and cost assigned to decimal places, c.5. 2.500.) Audit Estimated Use of Cost Drivers Activity-Based Overhead Rates Co: Activity Cost Pool Employee training $ Typing and secretarial $ $ Computing $ Facility rental Travel Direct $ Overhead costs assigned