Question 1 Easton 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 Cost Expected Activity Batch setups.......... $18,000 1,500 Material handling.... $43,400 1,400 General factory ....... $61,600 2,200 123.000 Actual costs and activities for the current year were as follows: 37.86 5591 Actual Activity Activity 3.b.catalog of Actual Overhead Cost $18,740 $42,060 $60,440 Batch setups... Material handling... General factory....... Total 1,400 2,180 sh.b 56.6 55.65 Required: 121340 (a) Using ABC method, determine how much total overhead was applied to products during the year. (8 marks) OH POT FOH = (b) Determine by how much was overhead overapplied or underapplied. (7 marks) (c) Compare and contrast between traditional method and ABC method. (10 marks) (Total: 25 marks)