Problem 18-5A 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 t service lines as to who is contibuting the greater amount to the bottom line. The area of contention is the assignment of overhead. The tax partners argue for assigning 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 purposes of analysis and comparison. The following overhead data are collected to develop the comparison. Assis Expected Use of Cost Drivers per Service Expected Use Estimated Overhead of ActviyrainingNumbert of minutes Tax Cost Pools Cost DriversAudit Cost Drivers $1,800,000 $1,100,000 $700,000 1,700 27,000 33,000 18 56,000 25,300 Employee training Typing and secretarial Computing Facility rental Travel Direct labor dollars Number of reports/forms Number of minutes Number of employees Per expense reports $216,000 76,200 204,000 142,500 81,300 $720,000 2,500 60,000 40 Direct 800 Tax Audit Total overhead cost assigned s