Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional...

Transcribed Image Text:

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 meteras handling and setup Pertinent data follow Se estimated overhead costs are $304,500, of which $247000 signed to the materials handing cost pool and $57.500gned to the setup cost pol Required: 1. Calculate the overhead assigned to the fabric case using the traditional costing system besed 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 compered to ABC Complete this question by entering your answers in the tabs Calculate the verneed assigned to the fabric case using the traditional costing even based on dat ons (Do not round intend calculations and und final answer to the need whe Ovatar Q FT B 2 W Z # 93 S MacBook Pro C $ 64 G Search or type URL % 15 66 EL R T Y & 7 .8 J D F G H J C V B N H 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 meteras handling and setup Pertinent data follow Se estimated overhead costs are $304,500, of which $247000 signed to the materials handing cost pool and $57.500gned to the setup cost pol Required: 1. Calculate the overhead assigned to the fabric case using the traditional costing system besed 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 compered to ABC Complete this question by entering your answers in the tabs Calculate the verneed assigned to the fabric case using the traditional costing even based on dat ons (Do not round intend calculations and und final answer to the need whe Ovatar Q FT B 2 W Z # 93 S MacBook Pro C $ 64 G Search or type URL % 15 66 EL R T Y & 7 .8 J D F G H J C V B N H