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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

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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 identifled two activity cost pools: materials handling and setup. Pertinent data follow: Total estimated overhead costs are $135,000, of which $115,000 is assigned to the materials handing cost pool and $20,000 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. 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.) Complete this question by entering your answers in the tabs below. 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.) 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. Was the leather case over-or undercosted by the traditional cost system compared to ABC

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