!Required informationExercise 9-34 and 9-35 (Static)[The following information applies to the questions displayed below.]Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for arepresentative quarter for the two models follow:Units producedProduction runs per quarterStandard10,00050Premium2,500Direct materials cost per unitDirect labor cost per unit$ 305025$ 6475Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection.Data on manufacturing overhead for a representative quarter follow:SupervisionSetup laborIncoming inspectionTotal overhead$ 206,250240,000172,500$ 618,750Exercise 9-34 (Static) Activity-Based Costing and Cost Driver Rates (LO 9-4)Required:a. Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter?b. The CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the followingcost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection.Compute the cost driver rates for the proposed system at Benton.Note: Round "Incoming inspection" answer to 1 decimal place.a. Overhead rateb. Supervisionb. Setup laborb. Incoming inspection% of direct labor cost% of direct labor costper production run% of direct material cost

Predetermined overhead rate = Budgeted total overhead / Budgeted direct labor costActivity rates =…

Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Units produced Production runs per quarter Standard 10,000 50 Premium Direct materials cost per unit Direct labor cost per unit $ 30 50 2,500 25 $ 64 75 Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow: Supervision Setup labor Incoming inspection Total overhead $ 206,250 240,000 172,500 $ 618,750 rcise 9-34 (Static) Activity-Based Costing and Cost Driver Rates (LO 9-4) uired: enton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter? he CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the following ost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection. ompute the cost driver rates for the proposed system at Benton.

Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Units produced Production runs per quarter Standard 10,000 50 Premium Direct materials cost per unit Direct labor cost per unit $ 30 50 2,500 25 $ 64 75 Manufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection. Data on manufacturing overhead for a representative quarter follow: Supervision Setup labor Incoming inspection Total overhead $ 206,250 240,000 172,500 $ 618,750 rcise 9-34 (Static) Activity-Based Costing and Cost Driver Rates (LO 9-4) uired: enton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter? he CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the following ost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection. ompute the cost driver rates for the proposed system at Benton.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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