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: Number of labor hours Number of material moves Number of setups Fabric Case Leather Case 28,000 7,000 660 90 160 1,340 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 fabric case using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the fabric case using ABC. 3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours. (Do not round Intermediate calculations and round your final answer to the nearest whole dollar amount. Overhead Assigned Required 2 > 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. Number of labor hours Number of material moves Number of wetups Fabric Case Leather Case 28,000 7,000 660 1,340 90 160 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 fabric case using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the fabric case using ABC 3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC? Complete this question by entering your answers in the tabs below. Required 1 Realired 2 Required Calculate the overhead assigned to the fabric case using ABC. (Round activity rates or activity proportions and intermediate calculations to four decimal places. Round your final answer to 2 decimal places) Owend Assigned Roonid 90 160 Number of material Number of setups 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 fabric case using the traditional costing system based on direct labor hours. 2. Calculate the overhead assigned to the fabric case using ABC. 3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC? Complete this question by entering your answers in the tabs below. Required Required 2 Required 3 Was the fabric case over or underconted by the traditional cost system compared to ABC?
