Please dont provide solution in an image based answers thank you Required informationBunker makes two types of briefcases, 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 pools: materials handling and setup. Pertinent data follow:Number of labor hoursNumber of material movesNumber of setupsFabric Case Leather Case9,00066080Total estimated overhead costs are $150,000, of which $110,000 is assigned to the materials handling pool and $40,000 isassigned to the setup pool.Required 11 Required 215,00044040Required:1. Calculate the overhead assigned to the leather case line using the traditional costing system based on 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 3

Name: Please dont provide solution in an image based answers thank you Requi
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Please dont provide solution in an image based answers thank you Required informationBunker makes two types of briefcases, fabric and leather. The company is currently using a traditional costing system withlabor hours as the cost driver but is consi

The overhead is assigned to the production on the basis of the pre-determined overhead rate. The…

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Required information Bunker 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: Number of labor hours Number of material moves Number of setups Fabric Case Leather Case 15,000 9,000 440 660 40 80 Total estimated overhead costs are $150,000, of which $110,000 is assigned to the materials handling pool and $40,000 assigned to the setup pool. Required: 1. Calculate the overhead assigned to the leather case line using the traditional costing system based on 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?