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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 Standard 11,280 50 Premium 2,800 25 $ 30 50 $ 54 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 $ 231,000 257,258 193,200 $ 681,150 Show Transcribed Text D C 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 inspection. Compute the cost driver rates for the proposed system at Benton. Note: Enter your answers rounded to 2 decimal places. a. Overhead rate b. Supervision b. Satup labor b. Incoming inspection % of direct labor cost % of direct labor cost par production nun % of direct material cost Show Transcribed Text

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 Standard 11,280 50 Premium 2,800 25 $ 30 50 $ 54 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 $ 231,000 257,258 193,200 $ 681,150 Show Transcribed Text D C 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 inspection. Compute the cost driver rates for the proposed system at Benton. Note: Enter your answers rounded to 2 decimal places. a. Overhead rate b. Supervision b. Satup labor b. Incoming inspection % of direct labor cost % of direct labor cost par production nun % of direct material cost Show Transcribed Text

Cornerstones of Cost Management (Cornerstones Series)
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 4CE: Larsen, Inc., produces two types of electronic parts and has provided the following data: There are...
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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 Standard 11,280 50 Premium 2,800 25 $ 30 50 $ 54 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 $ 231,000 257,258 193,200 $ 681,150 Show Transcribed Text 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 inspection. Compute the cost driver rates for the proposed system at Benton. Note: Enter your answers rounded to 2 decimal places. a. Overhead rate b. Supervision b. Satup labor b. Incoming inspection % of direct labor cost % of direct labor cost par production nun % of direct material cost Show Transcribed Text ა Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system et Benton (using direct labor costs as the allocation besis for overheed). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system et Benton. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Using current casting system b. Using proposed ADC system Unit cost Standard Premium
Transcribed Image Text: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 Standard 11,280 50 Premium 2,800 25 $ 30 50 $ 54 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 $ 231,000 257,258 193,200 $ 681,150 Show Transcribed Text 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 inspection. Compute the cost driver rates for the proposed system at Benton. Note: Enter your answers rounded to 2 decimal places. a. Overhead rate b. Supervision b. Satup labor b. Incoming inspection % of direct labor cost % of direct labor cost par production nun % of direct material cost Show Transcribed Text ა Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system et Benton (using direct labor costs as the allocation besis for overheed). b. Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system et Benton. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Using current casting system b. Using proposed ADC system Unit cost Standard Premium
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