[ORD 2022 R1] Template Question to model Cut/Fill Correctly

I have a template where I have material that needs to be cut in order to grade down to subgrade.  I also need this purple volume to be paid for as fill from the top of base to the finish grade.  This fill area is constant throughout the range of the template drop.  However the cut area will vary depending on the ground (or unsuitable) above it.

I have two questions:

1.  Do I need this component at all?  Will the Create Cut Fill Volumes tool know that the purple area needs to be removed in order to cut to the left bottom of the subgrade?  Even with this component present, the Cut/Fill Volume is not being shown as fill.  I don't see many templates from other agencies with this component shown, so I'm not sure if the cut volume is calculated correctly to account for the vertical cut at the outer limits of the base/subbase.

2.  If I need this component to calculate the purple fill volume, what volume option should be set in the feature definition?