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: Standard Premium Units produced 15,200 Production runs per quarter 50 3,800 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 $ 313,500 364,800 262,200 $ 940,500 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 intermediate calculations. Round your answers to 2 decimal places. a. Using current costing system b. Using proposed ABC system Unit cost Standard Premium
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: Standard Premium Units produced 15,200 Production runs per quarter 50 3,800 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 $ 313,500 364,800 262,200 $ 940,500 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 intermediate calculations. Round your answers to 2 decimal places. a. Using current costing system b. Using proposed ABC system Unit cost Standard Premium
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
Standard
Premium
Units produced
15,200
Production runs per quarter
50
3,800
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
$ 313,500
364,800
262,200
$ 940,500
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 intermediate calculations. Round your answers to 2 decimal places.
a. Using current costing system
b. Using proposed ABC system
Unit cost
Standard
Premium](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4e6d9cd5-3f4a-4fb7-a7d7-0645c8758efe%2F49799552-031b-4450-b215-06fd41043098%2Fsovtn4g_processed.png&w=3840&q=75)
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:
Standard
Premium
Units produced
15,200
Production runs per quarter
50
3,800
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
$ 313,500
364,800
262,200
$ 940,500
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 intermediate calculations. Round your answers to 2 decimal places.
a. Using current costing system
b. Using proposed ABC system
Unit cost
Standard
Premium
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Step 1: Introducing Activity Based Costing
VIEWStep 2: Calculate the Direct Labour Cost, Direct Material Cost & Predetermined Overhead Rate
VIEWStep 3: Calculate the Unit Product Cost Under Traditional Costing
VIEWStep 4: Calculate the Activity Rates
VIEWStep 5: Calculate the Unit Product Cost Under Activity Based Costing
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