P4.5A (LO 1, 2, 3, 4), AN Service 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 atgue 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 Ansign overhead sing traditional.com compute ohrad con compare Activity Cost Pools Employee training Typing and secretariat Computing Facility rental Travel Cost Drivers Direct labor dollars Number of reports forms Number of minutes Number of employees Per expense reports Estimated Use Estimated of Cost Drivers Use of Estimated per Service Cost Overhead Drivers Audit Tax $216.000 1.800.000 $1,100,000 $700,000 76,200 2.500 NOO 1.700 204.000 50.000 27.000 33.000 142.500 40 22 18 $1.300 Direct 56.000 25.300 5720XXO Instructions 2. Using traditional product costing a proponed by the tas partners, compute the total overhead cost antiyried to hoch services audit and tax of Lewis and Stark 1.1. Oling activity based costing propuse a schedule showing the computations of the activity based cethodes per cond 2. Prepare a cludote assigned hvity owned cost pool teach savice based on the use of the cost drives 4. Comment on the comparative cvethadon for the tices under broth traditional cost 621 Costined $337.441 Dilence Audit 557