Question 1 of 2 < > 13.33/20 Current Attempt in Progress Lewis and Stark is a...

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Question 1 of 2 < > 13.33/20 Current Attempt in Progress 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, while the audit partners argue for implementing activity-based costing. The partners agree to use next year's budgeted data for purposes of analysis and comparison. The following overhead data are collected to develop the comparison. Estimated Use of Cost Drivers per Service Activity Cost Pools Employee training Typing and secretarial Cost Drivers Direct labor dollars Estimated Overhead Estimated Use of Cost Drivers Audit Tax $213,000 $1,775,000 $1,196,000. $579,000 Number of reports/forms 76,400 2,500 800 1,700 Computing Number of minutes 193,200 60,000 27,000 33,000 COMING 98 11:29 PM 15/06/2022 Question 1 of 2 < > 13.33/20 Current Attempt in Progress 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, while the audit partners argue for implementing activity-based costing. The partners agree to use next year's budgeted data for purposes of analysis and comparison. The following overhead data are collected to develop the comparison. Estimated Use of Cost Drivers per Service Activity Cost Pools Employee training Typing and secretarial Cost Drivers Direct labor dollars Estimated Overhead Estimated Use of Cost Drivers Audit Tax $213,000 $1,775,000 $1,196,000. $579,000 Number of reports/forms 76,400 2,500 800 1,700 Computing Number of minutes 193,200 60,000 27,000 33,000 COMING 98 11:29 PM 15/06/2022