Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data fora representative quarter for the two models follow:StandardPremiumUnits producedProduction runs per quarter11,600502,90025Direct materials cost per unit$ 3050$ 6475Direct labor cost per unitManufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming materialinspection. Data on manufacturing overhead for a representative quarter follow:SupervisionSetup laborIncoming inspectionTotal overhead$ 239,250278,400200,100$ 717,750Required: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: Enter your answers rounded to 2 decimal places.a. Overhead rateh Sunervision% of direct labor cost% of direct lahor onst

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 h Sunervision % of direct labor cost of direct labor cost

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 h Sunervision % of direct labor cost of direct labor cost

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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Mozart Music Inc. makes three musical instruments: trumpets, tubas, and trombones. Amount Descriptions Assembly Fabrication Trombones Trumpets Tubas Total
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