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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 Activity Cost Pools Employee training Typing and secretarial Computing Facility rental Travel Cost Drivers Direct labor dollars Number of reports/forms Number of minutes Number of employees Per expense reports Estimated Overhead $197,450 76.900 217,200 145.000 81.450 $718,000 Estimated Use of Cost Drivers $1.795,000 2.500 60,000 40 Direct Audit $1,146,000 800 27,000 22 56,000 Tax $649.000 1,700 33,000 18 25,300 Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rates to 2 decimal places, eg. 12.25 and cost assigned to O decimal places, eg. 2,500.) Estimated Use of Cost Drivers Audit Activity-Based Overhead Rates Cost Assigned Activity Cost Pool Employee training Typing and secretarial $ $ Computing $ Facility rental $ Travel Direct $ Overhead costs assigned Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round overhead rates to 2 decimal places, eg. 12.25 and cost assigned to 0 decimal places, eg. 2,500.) Tax Estimated Use of Cost Drivers Activity-Based Overhead Rates Cost Assigned Cost Assigned $ $ $ $ $ $ $ Direct