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Part 2 of 2 2.5 points Required information Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional
Part 2 of 2 2.5 points 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 eBook Number of labor hours Number of material moves 15,000 9,000 440 660 Number of setups 40 80 Print Reference 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: 1. Calculate the overhead assigned to the leather case line using the traditional costing system based on direct labor hours 2. Calculate the overhead assigned to the leather case line using ABC 3. Was the leather case over- or undercosted by the traditional cost system compared to ABC? Complete this question by entering your answers in the tabs below. Required Required Required 1 2 3 ake Calculate the overhead assigned to the leather case line using the traditional costing system based on direct labor hours. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) Overhead Assigned f Show less & Required 2>
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