Eaker Company Uses Activity-Based Costing to Compute Product Costs for External

question 113

Essay

Eaker Company uses activity-based costing to compute product costs for external reports.The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool.Estimated costs and activities for the current year are presented below for the three activity centres:
$$\begin{array} { | l | r | r | } \hline \text { Activity Centre } & \text { Estimated Overhend Cost } & \text { Expected Activity } \\\hline \text { Batch setups } & \$ 20,400 & 1,200 \\\hline \text { Material handling } & 52,800 & 2,400 \\\hline \text { General factory } & 78,000 & 2,600 \\\hline\end{array}$$
Actual costs and activities for the current year were as follows:
$$\begin{array} { | l | r | r | } \hline \text { Activity Centre } & \text { Actual Overhead Costs } & \text { Expected Activity } \\\hline \text { Batch setups } & \$ 20,740 & 1,230 \\\hline \text { Material hardling } & 52,360 & 2,470 \\\hline \text { General factary } & 77,590 & 2,680 \\\hline\end{array}$$
Required:
a)How much total overhead was applied to products during the year?
b)By how much was overhead overapplied or underapplied? (Be sure to clearly label your Answer as to whether the overhead was overapplied or underapplied for each activity centre as well as for the total.)

Identify and describe different sources of water pollution.

Understand the impacts of nutrient pollution on aquatic ecosystems.

Explain the process and importance of sewage treatment.

Recognize the differences between point source and nonpoint source pollution.

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