Please do part (B2)

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 ines as to who is contributing the greater amount to the bottom ine. The area of contention is the assignment o overhead. The tax partners argue o assigning overhead on the besis of 40% o direct labor dollars while the audit partners argue for implementing activity-based costing The partners agree to use next year's budgeted data or purposes of analysis and comparison. The following overhead data are collected to develop the comparison. Use of Cost Drivers per Service Expected Use of Estimated Cost Overhead DriversAudi Cost Pools Cost Drivers 237,900si,830,000$1,126,000 $704,000 93,800 60,000 27,000 33,000 81.300 Direct 56,000 25,300 Employee training Direct labor dollars Typing and secretarialNumber of reports/forms 76,000 2,500 800 1,700 Number of minutes Number of cmplayces 143,000 Per expense reportsLO Facility rental 40 18 732,000 Your answer is correct. Using traditional product ccating as proposed by the tax partners, compute the total overhead coat assigned to both services (oudit and tax) of Lewis and Stark. AuditTax Total overhead cost assigned SHS04ool Spa 1600! Attempts: 1 of 3 used 1b1) Your answer is correct. Using activity-based coating, prepare a schedule showing the computotions of the octivity-based averhead rates (per cost driver). (Round overhead rate to 2 decimal places,e.g. 12.2s) Expected Use of Activity-Based Activity Cost Pools Ovorhead Cost Drivers Employee training 423790 830000Direct labor dollars Typing and secretarial 7600 25 Overhead Rates b. 131 per DL dollar 30.40l per report/form 3.23lper minute 3575lper employee 193800 60000Minutes 114300 HaEmployees Fecility rental Direct 732000 Attempts: 1 of 3 used (o2) 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 places, e.g. 12.25 and cost assigned to O decimal places, e.g. 2,500.) Expected Use of Activity-Dased Expected Use of Activity-Dased Activity Cost Pool Cost Drivers Overhead Rates Cost Assigned_Cost Drivers Overhead Rates Cost Assigned Employce training Typing and secretarial Facility rental Travel Direct Direct Overnead costs assigned Attempts: O of 3 used