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Bunker makes two types of briefcases, fabric and leather. The company is currently using a...

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Accounting

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: Fabric Case Leather Case Number of labor hours 18,000 7,000 Number of material moves 660 990 Number of setups 63 117 Total estimated overhead costs are $234,000, of which $198,000 is assigned to the materials handling pool and $36,000 is assigned to the setup pool. E4-12 (Algo) Assigning Costs Using Traditional System, ABC System [LO 4-1, 4-3, 4-4, 4-5, 4-6] Required: Calculate the overhead assigned to the

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