CALCULATOR PRINTER VERSION BACK NE Problem 17-05A a, b1-b2 (Part Level Submission) 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 Estimated Use of Cost Drivers per Service Study Activity Cost Pools Employee training Typing and secretarial Computing Facility rental Travel 8(t) Cost Drivers Direct labor dollars) Estimated Overhead $220,000 $1,540,000 Audit $1,101,000 Number of reports/forms 76,700 2,500 Number of minutes 200,200 60,000 Number of employees 149,000 40 Per expense reports 81,300 $736,000 Direct 000 27,000 22 56,000 $739,000 1,700 33,000 10 25,300 Using traditional product costing as proposed by the tax partners, compute the total averhead cost assigned to both services (audit and tax) of Lewis and Stark Audit Total overhead cost assigned Click if you would like to Show Work for this question: Doen She Wo