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 Estimated Use of Cost Drivers Activity Cost Pools Cost Drivers Estimated Overhead Audit Tax $202,125 $1837,500 $1.108,000 $729.500 Employee training Typing and secretarial Computing 76.500 2.500 800 1.700 Direct labor dollars Number of reports/forms Number of minutes Number of employees Per expense reports 225,000 60.000 27.000 33.000 Facility rental 150,000 40 22 18 Travel 81,375 Direct 56,000 25.300 $735,000 (a) Using traditional product costing as proposed by the taxpartners, compute the total overhead cost assigned to both services (audit and tax of Lewis and Stark Audit Tax Total overhead cost asigned 5