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 Overhead Estimated Use of Cost Drivers Activity Cost Pools Cost Drivers Audit Tax Employee training Direct labor dollars $ 202,675 $ 1,842,500 $ 681,500 1,161,000 Typing and secretarial Number of reports/forms 76,800 2.500 800 1,700 Computing Number of minutes 232,200 60.000 27.000 33.000 Facility rental Number of employees 144,000 40 22 18 - Travel Per expense reports 81.325 Direct 56.000 25,300 $737.000 Ch. 17 Homework (Graded) NWP Assessment Player UX Accounting question (ch X 21) WhatsApp ui/v2/assessment-player/index.html W WileyPLUS - Wileyp... "* All Opportunities .... Scholarships & agiarism Checker... RV Writing, Readin... Research and Citati... - / 1 Question 2 of 2 (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 Attempts: 0 of 3 used Save for Later Submit Answer (51) The parts of this question must be completed in order. This part will be available when you complete the part above. (12) The parts of this question must be completed in order. This part will be available when you complete the part above. 70 Mostly sunny Estimated Overhead Activity Cost Pools Employee training Expected Use of Cost Drivers per Activity Direct labor dollars Activity-Based Overhead Rates per DL dollar $ s Typing and secretarial Reports/forms per report/form $ Computing Minutes $ per minute Facility rental Employees per employee S Travel Direct Direct LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Tax Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rate to 2 decimal p e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.) Audit Expected Use of Activity-Based Expected Use of Activity-Based Activity Cost Pool Cost Drivers Overhead Rates Cost Assigned Cost Drivers Overhead Rates Cost Assigned Employee training $ Typing and secretarial $ $ $ $ $ $ Computing $ $ $ Facility rental $ Travel Direct Direct Overhead costs assigned Estimated Overhead Activity Cost Pools Employee training Expected Use of Cost Drivers per Activity Direct labor dollars Activity-Based Overhead Rates per DL dollar $ s Typing and secretarial Reports/forms per report/form $ Computing Minutes $ per minute Facility rental Employees per employee S Travel Direct Direct LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR PROBLEM Tax Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rate to 2 decimal p e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.) Audit Expected Use of Activity-Based Expected Use of Activity-Based Activity Cost Pool Cost Drivers Overhead Rates Cost Assigned Cost Drivers Overhead Rates Cost Assigned Employee training $ Typing and secretarial $ $ $ $ $ $ Computing $ $ $ Facility rental $ Travel Direct Direct Overhead costs assigned
