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:

	Fabric Case		Leather Case
Number of labor hours	17,000		11,000
Number of material moves	560		1,040
Number of setups	35		135

Total estimated overhead costs are $249,800, of which $192,000 is assigned to the materials handling cost pool and $57,800 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. (Do not round intermediate calculations.)
	Overhead assigned:

2.	Calculate the overhead assigned to the fabric case using ABC.
	Overhead assigned:

3.	Was the fabric case over- or undercosted by the traditional cost system compared to ABC?
	Fabric case: