Question 4 (9 marks) Eaker Company uses activity-based costing to apply overhead costs for internal purposes. The company has three activity cost pools and applies overhead using predetermined overhead rates for each activity cost pool. The estimated costs and activities for the current year and used to create the predetermined rates are presented below for the three activity centres Activity Centre Estimated Overhead Costs Expected Activity Batch setups $21,000 600 setups Material handling $48.000 1.200 kilograms General factory $65,000 1,300 machine hours Actual costs and activities for the current year were as follows: Activity Centre Batch setups Material handling General factory Actual Overhead Costs $20,740 $52.360 $77,590 Actual Activity 615 setups 1.235 kilograms 1,340 machine hours Required: a) How much total overhead was applied to the products made 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 c) if you had a business would you implement an ABC system? Why or why not? Explain your