Che Required information 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 28,000 5,000 Number of material moves 560 1.040 Number of setups 51 119 Total estimated overhead costs are $243.000, of which $192,000 is assigned to the materials handling cost pool and $51,000 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 Found intermediate calculations and round your final answer to the nearest whole dollar amount.) Ovih Assigned Check my wort Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system with tobor 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 handing and wetup Pertinent data follow Valerie Ceather Case flusber of her hours 20,000 5,000 Number of waterial soves Sce Musher of setups 51 119 1. Total estimated ovestead costs are $243,000, of which $192000 assigned to the material Handling cost pool and 551000 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 underconted by the traditional cost system compared to ABC Complete this question by entering your answers in the tabs below. Required 2 Anquired Regured Calculate the overhead assigned to the roue using ABC (Round activity rates or activity proportions and intermediate calculations to four decimal places. Round your final answer to 2 decimal places) Tumber of labor hours Number of material moves Number of setups 20,000 560 51 5,000 1,040 119 Total estimated overhead costs are $243,000, of which $192.000 is assigned to the materials handling cost pool and $51,000 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 d 3 Was the fabric case over- or undercosted by the traditional cost system compared to ABC? Fabric Case
