Problem 4-5A a, b1-b2 (Video) 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, hile the audit partners argue for implementing activity-based costing The partners agree to use next year's budgeted data for purposes of an air s and comparison. The following overhead data are collected to develop the comparison. Estimated Use of Cost Drivers per Service Estimated Overhead Estimated Use of Cost Drivers Activity Cost Pools Employee training Typing and secretarial Cost Drivers Audit Tax Direct labor dollars Number of reports/forms Number of minutes Number of employees Per expense reports $221,100 76,200 209,400 149,000 81,300 737,000 1,842,500 $1,112,000 $730,500 2,500 60,00027,000 33,000 800 1,700 Facility rental Travel 40 Direct 18 56,00025,300 using traditionall 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 rat 12.25.) es to 2 decimal places, e.g