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 years budgeted data for purposes of analysis and comparison. The following overhead data are collected to develop the comparison.

										Use of Cost Drivers per Service
Activity Cost Pools		Cost Drivers		Estimated Overhead			Estimated Use of Cost Drivers			Audit		Tax
Employee training		Direct labor dollars		$198,000			$1,800,000			$1,168,000		$632,000
Typing and secretarial		Number of reports/forms		76,400			2,500			800		1,700
Computing		Number of minutes		216,600			60,000			27,000		33,000
Facility rental		Number of employees		148,000			40			22		18
Travel		Per expense reports		81,000			Trace directly			56,000		25,300
				$720,000

Prepare a schedule assigning each activitys overhead cost pool to each accounting service based on the use of the cost drivers. (Round overhead rates to 2 decimal places, e.g. 12.25 and cost assigned to 0 decimal places, e.g. 2,500.)

		Audit						Tax
Activity Cost Pool		Use of Cost Drivers		Activity-Based Overhead Rates		Cost Assigned		Use of Cost Drivers per Service		Activity-Based Overhead Rates		Cost Assigned
Employee training		$enter the direct labor dollars		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 0 decimal places		$enter the direct labor dollars		$enter a dollar amount rounded to 2 decimal places		$enter a dollar amount rounded to 0 decimal places
Typing and secretarial		enter a number of reports or forms		$enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 0 decimal places		enter a number of reports or forms		$enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 0 decimal places
Computing		enter a number of minutes		$enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 0 decimal places		enter a number of minutes		$enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 0 decimal places
Facility rental		enter a number of employees		$enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 0 decimal places		enter a number of employees		$enter a dollar amount rounded to 2 decimal places		enter a dollar amount rounded to 0 decimal places
Travel		enter a number of expense reports		Direct		enter a dollar amount rounded to 0 decimal places		enter a number of expense reports		Direct		enter a dollar amount rounded to 0 decimal places
Overhead costs assigned						$enter a total amount rounded to 0 decimal places						$enter a total amount rounded to 0 decimal places