Question: need all requirments! please help! Required information E4-12 and E4-13 Bunker makes two types of briefcases, fabric and leather. The company is currently using a
Required information E4-12 and E4-13 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 octivity pools: materials handiling and setup. Pertinent data follow: Total estimated overhead costs are $194,500, of which $162,500 is assigned to the materials handiling pool and $32,000 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: 1. Calculate the overhead assigned to the fabric case using the traditional costing system based on 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
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