Question 12 of 12 -11 III View Policies 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 Computing Facility rental Travel Cost Drivers Direct labor dollars Number of reports/forms Number of minutes Number of employees Per expense reports Estimated Overhead $221,100 76,900 213,000 145.000 81,000 $737.000 Estimated Use of Cost Drivers 51.842,500 2,500 60,000 Audit $1.140.000 800 27.000 Tax $702,500 1700 33.000 te 25300 Direct 22 56,000 Using traditional product costing a proposed by the taxpartners, compute the total overhead cont assigned to both services audit and tax of Lewis and Stark Audit Tax Total overhead cost assigned $ eTextbook and Media Using tvity-based costine prepare a schedule showing the competition of the activity timed overhead rates (per cost driver Round overhead rutes to 2 decimal 12.25) DOD DO Question 12 of 12