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Bunker makes two types of briefcase, fabric and leather. The company activity-based costing system. In preparation for the possible switch, Bunker has identified two activity

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Bunker makes two types of briefcase, fabric and leather. The company activity-based costing system. In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertnent data follow is currently using a traditional costing system with labor hours as the cost driver but is considering switching to an Number of labor hours Number of material moves Number of setups 15,000 440 40 Case Leather Case 9,000 660 80 Total estimated overhead costs are $150,000, of which $110,000 is assigned to the materials handling cost pool and $40,000 is assigned to the setup cost pool Required: Calcuiate the overhead assigned to the leather case line usi answer to the nearest whole dollar amount.) ng the traditional costing system based on direct labor hours. (Do not round intermediate calculations and round your 2. Calcuiate the overhead assigned to the leather case line using ABC. (Round activity rates or activity proportions, and intermediate calculations to four decimal places Round activity proportions, and your final answer to 2 decimal place. 3. Was the leather case over-or undercosted by the traditional cost system compared to ABC

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