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Question 2 of 2 0.33/1 E View Policies Show Attempt History 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 taxpartners 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 Cost Drivers Estimated Use of Cost Drivers Estimated Overhead Audit $214.800 52790.000 51134.000 365p.co Activity Cost Pools Employee training Typing and secretarial Computing Facility rental 76.800 800 1700 Direct labor dollars Number of reports Forms Number of minutes Number of employees Per pense reports 2,500 60.000 199 200 27.000 33.000 144.000 40 18 Travel 89 200 Direct 56,000 25.300 5716.000 Your is correct Ungton product costing a pro ty shut out the othed cotto bon and tools and Star Your answer is correct Using traditional product conting 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 cont assigned $ 433600 $ 262.400 eTextbook and Media Attempts 1 of used (61) Dungty-based costing propowing the computations of the deveria e prodh [Round overhead roles to 2 decimale 13:25 Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity Activity Owrwadi $ Employee training Typing and Berarial Direct dor Report 5 Comune 5 Facy TI Det e Textbook and Media Attempts: 1 of 3 used (61) Using activity-based costing prepare a schedule showing the computations of the activity-based overhead rates (per cost driwer). (Round overhead rates to 2 decimal places, 03. 1225) Activity Cost Pools Estimated Overhead Expected Use of Cost Drivers per Activity Activity B Overhead 5 $ Direct labor dollars S Employee training Typing and Secretarial Reports Nord $ Computing Minutes Facility Employees S Travel Direct Direct e Textbook and Media