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. Portinent data follow Number of labor hours Number of material moves Number of setups Fabric Case 16,000 546 52 Leather Case 9.000 854 78 Total estimated overhead costs are $214,000, of which $175,000 is assigned to the materials handling cost pool and $39,000 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 ABC. (Round activity rates or activity proportions and intermediate calculations to four decimal places. Round your final answer to 2 decimal places.) Overhead Assigned 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: matertals handling and setup. Pertinent data follow. Fabric Case 16, een Nunber of labor hour's Number of material soves Number of setups 546 Leather Case 9,000 854 78 52 Total estimated overhead costs are $214,000, of which $175,000 is assigned to the materials handling cost pool and $39,000 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: Required 2 Required) Was the fabric case over- or undercosted by the traditional cost system compared to ABC? Fabric Case 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 Fabrica Leather Case Number of labor hours 16,000 9,000 Number of material moves 546 854 Number of setups 52 78 Total estimated overhead costs are $214.000, of which $175.000 is assigned to the materials handling cost pool and $39.000 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 2 Required 3 Calculate the overhead assigned to the leather case line using ABC. (Round activity rates or activity proportions and intermediate calculations to four decimal places. Round your final answer to 2 decimal places.) Overhead Assigned 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 16,000 546 52 Leather Case 9,000 Number of labor hours Number of material moves Number of setups 854 78 Total estimated overhead costs are $214.000, of which $175,000 is assigned to the materials handling cost pool and $39,000 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 1 Required 2 Required 3 Was the leather case over- or undercosted by the traditional cost system compared to ABC? Leather Case
