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Hy and van Lamsweerde 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 regarding 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 labour dollars, while the audit partners argue for implementing activity-based costing. The partners agree to use next year's budgeted data for analysis and comparison. The following overhead data are collected: Estimated Use of Cast Drivers per Service Estimated Use of Cost Drivers Activity Cost Pools Employee training Typing and secretarial Computing Facility rental Travel Cost Drivers Direct labour dollars Number of reports and forms Number of minutes Number of employees Per expense reports Estimated Overhead $225,750 75,600 213,500 154,350 83,300 $752,500 $1,881,250 2,700 61,000 45 Audit $927,000 600 25,000 25 56,700 Tax $954,250 2,100 36,000 20 26,600 Direct 2. Prepare a schedule assigning each activity's overhead cost pool to each service based on the use of the cost drivers. Audit Tax Training $ Typing and secretarial Computing Rent Travel (Direct) Total overhead assigned

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