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Please help with this question! Traditional OH basis = 40% of DL dollars Expected Use of Cost Drivers per Service Activity Cost Pools Estimated Expected

Please help with this question!

Traditional OH basis = 40% of DL dollars

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Expected Use of Cost Drivers per Service Activity Cost Pools Estimated Expected Use Cost Drivers Overhead of Cost Drivers Audit Tax Employee training vullo Direct labour dollars $216,000 Typing and secretarial $1,800,000 $1,050,000 $750,000 Number of reports and forms 76,200 2,500 800 1,700 Computing Number of minutes 204,000 60,000 25,000 35,000 Facility rental un Number of employees 101 0 142,500 amort 18 Travel 000.080 Per expense reports fronts 81,300 Direct (00.0) 56,000 25,300 $720,000 Instructions (a) Using traditional product costing as proposed by the tax partners, calculate the total overhead cost assigned to both services (audit and tax) of Hy and van Lamsweerde. (b) 1. Using activity-based costing, prepare a schedule showing the calculations of the activity-based overhead rates (per (b) (2) Cost assigned- cost driver). Tax $350,241 2. Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (c) Classify each of the activities as a value-added activity or a non-value-added activity. (d) Difference-Audit (d) Comment on the comparative overhead cost for the two services under both traditional costing and ABC. $50,241

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