Bunker makes two types of briefcase, fabric and leather.

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:

 Fabric Case Leather Case

Number of labor hours 15,000 10,000 

Number of material moves 551 899 

Number of setups 56 84 

Required:

1. (Do not round intermediate calculations.)

I got 89,300 as the overhead assigned (This answer is correct)

2. 

3.