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 $16,0009,000$

Number of material moves $520780$

Number of setups $3070$

Total estimated overhead costs are $$194,500,$ of which $$162,500$ is assigned to the materials handling cost pool and $$32,000$ is assigned to the setup cost pool.