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 quarterDirect materials cost per unitDirect labor cost per unitSupervisionSetup laborIncoming inspectionTotal overheadManufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection.Data on manufacturing overhead for a representative quarter follow:Standard13,20050$ 3050$ 272,250280,500227,708$ 780,450a. Using current costing systemh sinn nmnnnsed ARC sustamPremium3,30025$ 6475Exercise 9-35 (algo) Activity-Based Costing (LO 9-4)Required:a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct laborcosts as the allocation basis for overhead).b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton.Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.Unit costStandardPremium

The traditional costing method, also known as the current costing system, allocates total overheads…

Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Bata för a representative quarter for the two models follow: Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Standard 13,200 $ 272,250 280,500 227,700 $ 780,450 50 $ 30 50 Premium 3,300 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: 25 $ 64 75 ercise 9-35 (algo) Activity-Based Costing (LO 9.4) quired: Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labo costs as the allocation basis for overhead). Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.

Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Bata för a representative quarter for the two models follow: Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Standard 13,200 $ 272,250 280,500 227,700 $ 780,450 50 $ 30 50 Premium 3,300 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: 25 $ 64 75 ercise 9-35 (algo) Activity-Based Costing (LO 9.4) quired: Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labo costs as the allocation basis for overhead). Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9CE: Patterson Company produces wafers for integrated circuits. Data for the most recent year are...

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Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of Generic and 652,200 of Label, and the overhead for each of its cost pools is as follows: It has also estimated the activities for each cost driver as follows: How much is the overhead allocated to each unit of Generic and Label?
Primera Company produces two products and uses a predetermined overhead rate to apply overhead. Primera currently applies overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided: Actual results reported by department and product during the year are as follows: Required: 1. Compute the plantwide predetermined overhead rate and calculate the overhead assigned to each product. 2. Calculate the predetermined departmental overhead rates and calculate the overhead assigned to each product. 3. Using departmental rates, compute the applied overhead for the year. What is the under- or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead variance calculated in Requirement 3, assuming it is not material in amount. What additional information would you need if the variance is material to make the appropriate journal entry?
Lansing. Inc., provided the following data for its two producing departments: Machine hours are used to assign the overhead of the Molding Department, and direct labor hours are used to assign the overhead of the Polishing Department. There are 30,000 units of Form A produced and sold and 50,000 of Form B. Required: 1. Calculate the overhead rates for each department. 2. Using departmental rates, assign overhead to live two products and calculate the overhead cost per unit. How does this compare with the plantwide rate unit cost, using direct labor hours? 3. What if the machine hours in Molding were 1,200 for Form A and 3,800 for Form B and the direct labor hours used in Polishing were 5,000 and 15,000, respectively? Calculate the overhead cost per unit for each product using departmental rates, and compare with the plantwide rate unit costs calculated in Requirement 2. What can you conclude from this outcome?
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 Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead 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: Standard 11,600 50 $ 30 50 $ 239,250 278,400 200, 100 $ 717,750 a. Overhead rate Premium 2,900 25 $ 64 75 Exercise 9-34 (Algo) 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 following cost drivers: direct labor cost for…
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 Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Inconing inspection Total overhead 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: Standard 17,200 50 $ 30 50 $ 354,750 306,375 296,700 $ 957,825 a. Using current costing system b. Using proposed ABC system Premium 4,300 25 $ 64 75 Exercise 9-35 (algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC…
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 Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead 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: Standard 14,000 50 $ 30 50 $ 288,750 336,000 241,500 $ 866,250 Premium 3,500 25 $ 64 75 a. Using current costing system b. Using proposed ABC system Exercise 9-35 (algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct lab costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system…
Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow: Standard Premium Units produced Production runs per quarter 11,600 50 2,900 25 Direct materials cost per unit $ 30 50 $ 64 75 Direct labor cost per unit 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 $ 239,250 278,400 200,100 $ 717,750 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 following cost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming…
[The following information applies to the questions displayed below.] 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 Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead 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: Standard 10,400 50 $ 30 50 $ 214,500 249,600 179,400 $ 643,500 a. Overhead rate b. Supervision b. Setup labor b. Incoming inspection Premium 2,600 25 $ 64 75 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…
The controller of PUSO Co. estimates the amount of materials handling overhead cost that should be allocated to the firm's two product using the data below: Specialty Windows 7,000 Wall Mirrors Total expected units produced Total expected materials move Expected direct labor per unit 8,000 900 300 7 5 The total materials handling cost for the year is expected to be P38, 448. If the materials handling cost is allocated on the basis of direct labor-hours, how much of the total material handling cost should be allocated to the specialty windows?
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 Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Standard 11,600 50 $30 50 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: $ 239,250 278,400 200,100 $ 717,750 Premium 2,900 25 $ 64 75 Exercise 9-35 (algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. Note: For all requirements, do not round…
! Required information [The following information applies to the questions displayed below.] 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 Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead 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: Standard 11,600 50 $30 50 $ 239,250 278,400 200, 100 $ 717,750 a. Overhead rate b. Supervision b. Setup labor b. Incoming inspection Premium 2,900 25 $ 64 75 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…
The controller of Hendershot Corporation estimates the amount of materials handling overhead cost that should be allocated to the company's two products using the data that are given below: Wall Specialty Mirrors Windows Total expected units produced Total expected material moves Expected direct labor-hours per unit 11,900 1,710 1,190 1,610 8 The total materials handling cost for the year is expected to be $17,148.7O. If the materials handling cost is allocated on the basis of material moves, the total materials handling cost allocated to the specialty windows is closest to: (Round your intermediate calculations to 4 decimal places.)