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 14,000 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: $ 288,750 336,000 241,500 $ 866,250 Premium 3,500 25 $64 75 -rcise 9-35 (algo) Activity-Based Costing (LO 9-4) ired: ompute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct la Osts as the allocation basis for overhead). ompute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. ote: 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. 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 14,000 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: $ 288,750 336,000 241,500 $ 866,250 Premium 3,500 25 $64 75 -rcise 9-35 (algo) Activity-Based Costing (LO 9-4) ired: ompute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct la Osts as the allocation basis for overhead). ompute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton. ote: 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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vi.9
![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 at Benton.
Note: For all requirements, do not round intermediate calculations.
ound your answers to 2 decimal places.
Unit cost
Standard
Premium](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe62faf46-f12c-4699-a6e5-8137cad9c087%2F3db0fc29-5340-4a87-8e80-498a6277db89%2Ftaq2ss_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:
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 at Benton.
Note: For all requirements, do not round intermediate calculations.
ound your answers to 2 decimal places.
Unit cost
Standard
Premium
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