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 Use Estimated Activity Cost Pools Cost Drivers Overhead Cost Drivers Audit Tax Employee training Direct labor dollars $214,800 $1.790,000 $1,134,000 5656,000 Typing and secretarial Number of reports/forms 76.800 2.500 B00 1,700 Computing Number of minutes 199 200 60,000 27,000 33,000 Facility rental Number of employees 144,000 40 22 18 Travel Per expense reports Direct 56.000 25.300 $716,000 of 81,200 Question 4 of 4 > -/25 40 22 Facility rental Travel Number of employees Per expense reports 144,000 81.200 $716,000 18 25,300 Direct 56,000 (a) 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 e Textbook and Media Save for Later Attempts: unlimited Submit