Erskine 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
- Batch setups $30,400 Expected Activity 1,600
- Material handling 69,600 Expected Activity 2,900
- General factory 21,700 Expected Activity 700
Actual costs and activities for the current year were as follows:
Actual Overhead Cost
- Batch setups $29,480 Actual Activity 1,600
- Material handling 69,930 Actual Activity 2,850
- General factory 20,960 Actual Activity 650
a. How much total overhead was applied to products during the year? Show all mathematical calculations for credit and label everything clearly.