Please do not give solution in image format thanku Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system withlabor hours as the cost driver but is considering switching to an activity-based costing system. In preparation for thepossible switch, Bunker has identified two activity cost pools: materials handling and setup. Pertinent data follow:Number of labor hoursNumber of material movesNumber of setupsFabric Case Leather Case18,0007007,0001,05013070Total estimated overhead costs are $254,000, of which $210,000 is assigned to the materials handling cost pool and$44,000 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 3Calculate the overhead assigned to the fabric case using the traditional costing system based on direct labor hours. (Do notround intermediate calculations and round your final answer to the nearest whole dollar amount.)Overhead Assigned< Required 1Required 2 > Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Calculate the overhead assigned to the fabric case using ABC. (Round activity rates or activity proportions and intermediatecalculations to four decimal places. Round your final answer to 2 decimal places.)Overhead AssignedRequired 1Complete this question by entering your answers in the tabs below.Required 2< Required 1Required 3Required 3 >Chapter 4 Managerial HomeworkWas the fabric case over- or undercosted by the traditional cost system compared to ABC?Fabric Case< Required 2Required 3>

Name: Please do not give solution in image format thanku Bunker makes two ty
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Description: Please do not give solution in image format thanku Bunker makes two types of briefcase, fabric and leather. The company is currently using a traditional costing system withlabor hours as the cost driver but is considering switching to an activity-bas

The overhead rate is calculated as the estimated overhead cost divided by the estimated base…

Business

Accounting

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: Number of labor hours Number of material moves Number of setups Fabric Case Leather Case 18,000 700 7,000 1,050 130 70 Total estimated overhead costs are $254,000, of which $210,000 is assigned to the materials handling cost pool and $44,000 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?

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: Number of labor hours Number of material moves Number of setups Fabric Case Leather Case 18,000 700 7,000 1,050 130 70 Total estimated overhead costs are $254,000, of which $210,000 is assigned to the materials handling cost pool and $44,000 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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