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 Standard 13,600 Premium 3,400 Production runs per quarter 50 Direct materials cost per unit $ 30 50 25 $ 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 $ 280,500 284,325 234,600 $ 799,425 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?
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 Standard 13,600 Premium 3,400 Production runs per quarter 50 Direct materials cost per unit $ 30 50 25 $ 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 $ 280,500 284,325 234,600 $ 799,425 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?
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![Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a
representative quarter for the two models follow:
Standard
Units produced
Production runs per quarter
13,600
50
Premium
3,400
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
$ 280,500
284,325
234,600
$ 799,425
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 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. Setup labor
b. Incoming inspection
% of direct labor cost
% of direct labor cost
per production run
% of direct material cost
Check](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F561fb4d3-5155-42cf-b155-af8da924ec43%2F29d87517-2346-4983-ad02-37a42153ada2%2F1eqfufr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a
representative quarter for the two models follow:
Standard
Units produced
Production runs per quarter
13,600
50
Premium
3,400
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
$ 280,500
284,325
234,600
$ 799,425
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 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. Setup labor
b. Incoming inspection
% of direct labor cost
% of direct labor cost
per production run
% of direct material cost
Check
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