Problem 17-5A Lewis and Stark is a public accounting firm that offers two primary services, auditing and tax-return preparation. A controversy has developed is contributing the greater amount to the bottom line. The area of conversion is the assignment of overhead. The tax partners are for the tens inverted on while the audit partners argue for implementing activity-based costing. The partners agree to use next year's budgetedet for purposes only and como collected to develop the comparison The Expected Use of Cost Drivers per Service Expected Use Cost Drivers $1,822,100 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 Audit $1,183,000 800 Estimated Overhead $255,150 76,900 172.650 143,000 81.300 1729.000 2.500 60,000 $639,500 1,700 33,000 27,000 Direct 56,000 25,300 of Los d at Using traditional product costing as proposed by the tax partners, compute the total overhead cost assigned to both services (audit and Audit Tax Total overhead cost assigned 473200 255800 (per costr o acting. Drepare a schedule showing the computations of the activity-based overhead Using traditional product costing as proposed by the tax partners, compute the total overhead cost assigned to both services (audit and tax of Lewandt Total overhead cost assigned Audit 473200 2 55800 Using activity-based costing, prepare a schedule showing the computations of the activity based overhead rates (per cost driver). (Round overhead rate to 2 decimal Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity Direct labor dollars Activity-Based Overhead Rates Employee training per DL dollar Typing and secretarial Reports/forms per report/form Minutes per minute Computing Employees per employee Facility rental Direct Direct Travel verhoed cost pool to each service based on the use of the cost drivers (Round overhead rate to 2 decimal places Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. (Round verhead to o decimal places, e.g. 2,500.) Activity Cost Pool Audit Expected Use of Activity-Based Cost Drivers Overhead Rates Cost Assigned Employee training Expected Use of Activity Based Cost Drivers Overhead Rates Contened Typing and secretarial Computing Facility rental Travel Overhead costs assigned Click if you would like to Show Work for this question: Open Show Work Question Attempt e d