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10 art 2 of 2 Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system

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10 art 2 of 2 Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow: Fabri Case Leather Case Number of labor hours 28,000 7.000 Number of material moves 1,340 Number of setup 90 160 8 its 660 Total estimated overhead costs are $367,500, of which $300,000 is assigned to the materials handling cost pool and $67,500 is assigned to the setup cost pool Required: 1. Calculate the overhead assigned to the leather case line using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the leather case line using ABC. 3. Was the leather case over or undercopted by the traditional cost system compared to ABC? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below

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