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Problem 17.05A a, bt-2 (Video) Lewis and Stark is public accounting to that offers two primary servicing and tertion Action developed between the the service

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Problem 17.05A a, bt-2 (Video) Lewis and Stark is public accounting to that offers two primary servicing and tertion Action developed between the the service lines as to who contributing the rester amount to the bottom line. The area of contention is the men of vehead. The taxpartners argue forang verhead on the 40 of decorators, while partners argue for implementing activity based costing. The partners agree to use next year budget dan of comparison. The longa data are ofted to develop comparison Estimated Use of Cost Drivers per Service Estimated the Estimated od Activity Cot Pouls Cost Drivers Overhead Cost Drivers Audit Tax Employee training Direct inbor dollars 3214,200 $1,75.000 51, 140,000 45.000 Drong and secretarial Number of reports/forma 75,300 2.500 300 1,700 Computing Number of minutes 200,400 0.000 27,000 13, Tony rental team of plopes 142,000 00 11 Travel Per expense reports Det 55,000 25.100 14.000 to product costing proposed by the tax parteneriate to both towand Audit Total Overhead coat wgned Uning div.based coming procedure the common the advised testre del paese Estimated Expected Used Activity las Activity Cost Pools Overhead Cost Drivers per Activity Overal Esployee ring Director dollar dans Terme CALCULATOW FULL SCREEN Using traditional product costing as proposed by the tax partners, compute the total overhead cost assigned to both services (audit and tax) of Lewis and Stark Audit Tax Total overhead cost assigned Using activity based costing, prepare a schedule showing the computations of the activity based overhead rates (per cost driver), (Round overhead es to decimal plac Estimated Expected Use of Activity based Activity Cost Pools Overhead Cost Drivers per Activity Overhead Rates Employee training Direct labor dollars $ per OL dollar Typing and secretarial Reports/forms $ per report form Computing Minutes per minute 5 Facility rental Employees per employee Travel Direct Direct Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers (Roundlowerhead rates to decimal place. 12.25 ans decimal places .0. 2,500.) Andit Th Travel CALCULATOR Direct Direct Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Hound overhead rates to decimal places no. 12. decimal places, e.g. 2,500.) Audit Tax Estimated Use of Activity Based Estimated Use of Activity Based Activity Cost Pool Cost Drivers Overhead Rates Cost Assigned Cost Drivers Overhead Rates Cost Assigned Employee training Typing and secretarial $ Computing $ $ Facility rental Travel Direct Direct Overhead costs assigned

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