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Ch. 5 XYZ Company uses activity-based costing to compute product costs for external reports. The company has three activity centers and applies overhead using predetermined
Ch. 5 XYZ Company uses activity-based costing to compute product costs for external reports. The company has three activity centers and applies overhead using predetermined overhead rates for each activity center. Estimated costs and activities for the current year are presented below for the three activity centers: Estimated Overhead Expected Cost Activity $20,400 2000 $52,800 2640 $78,000 3000 Batch setups Material handling General factory... Actual costs and activities for the current year were as follows: Batch setups. Material handling General factory. Actual Overhead Actual Cost Activity $20,740 1250 $52,360 2580 $77,590 2350 Required: (a.) How much total overhead was applied to products during the year? (6.) By how much was overhead overapplied or underapplied? (Be sure to clearly label your answer as to whether the overhead was overapplied or underapplied.)
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