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Please find the attachment in this discussion box with the question. Please provide helpful and thorough explanations. Sandhill and Cullumber is a public accounting rm

Please find the attachment in this discussion box with the question. Please provide helpful and thorough explanations.

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Sandhill and Cullumber is a public accounting rm that offers two primary services: auditing and tax return preparation. A controversy has developed between the partners of the two service lines regarding 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 labour dollars, while the audit partners argue for implementing activitybased costing. The partners agree to use next year's budgeted data for analysis and comparison. The following overhead data are collected: Employee training Direct labour dollars $235,170 $1,959,750 $956,000 $1,003,750 Typing and Number of reports and 83,230 2,900 700 2,200 secretarial forms Computing Number of minutes 215,600 61,600 26,000 35,600 Facility rental Number of employees 168,000 48 30 18 Travel Per expense reports 81,900 Direct 56,700 25,200 $783,900 (a) Using traditional product costing as proposed by the tax partners, calculate the total overhead cost assigned to both services (audit and tax) of Sandhill and Cullumber. Overhead assigned to audit: 35 Overhead assigned to tax: $ (b) 1. Using activity-based costing, prepare a schedule showing the calculations ofthe activity-based overhead rates (per cost driver). (Hint: As a result of breaking out travel costs as a separate cost pool, travel costs can now be traced directly to services provided. Thus, an overhead rate is not needed.) (Round answers to 2 decimal places, as. 15.25.) Employee training 55 per DL dollar Typing and secretarial $ l per report/form Computing $ per minute Facility rental $ l per employee 2. Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. Training $ $ Typing and secretarial Computing Rent Travel (Direct) Total overhead assigned $ $

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