Required informationSkip to questionBunker makes two types of briefcases, 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 pools: materials handling and setup. Pertinent data follow: Fabric CaseLeather CaseNumber of labor hours$18,0007,000$Number of material moves$7001,050$Number of setups$70130$Total estimated overhead costs are $$254,000,$ of which $$210,000$ is assigned to the materials handling pool and $$44,000$ is assigned to the setup pool.Required:Calculate the overhead assigned to the fabric case using the traditional costing system based on labor hours.Calculate the overhead assigned to the fabric case using ABC.Was the fabric case over$-$ or undercosted by the traditional cost system compared to ABC?