Part 1 that is cut off reads: "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:"

E4-12 Assigning Costs Using Traditional System, ABC System [LO 4-1,4-3, 4-4,4-5, 4-6] 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 conside In preparation for the possible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow. Fabria Case Leather Case Number of labor hours 21,000 11,000 Number of material moves 630 1,170 Number of setups 35 175 Total estimated overhead costs are $282,300, of which $234,000 is assigned to the materials handling cost pool and 548,300 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 an dollar amount.) Overhead Assigned 2. Calculate the overhead assigned to the fabric case using ABC. (Round activity rates or activity proportions, and intermediate calculations to four decimal Overhead Assigned 3. Was the fabric case over- or undercosted by the traditional cost system compared to ABC? Fabric Case