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 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 S 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 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. smo cataion THE ONE THO Simone Standard 12,800 50 $ 30 50 $ 264,000 307,200 220,800 $ 792,000 Kako Premium 3,200 25 $ 64 75 13. Unit cost Standard Premium
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 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 S 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 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. smo cataion THE ONE THO Simone Standard 12,800 50 $ 30 50 $ 264,000 307,200 220,800 $ 792,000 Kako Premium 3,200 25 $ 64 75 13. Unit cost Standard Premium
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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
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
S
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 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.
smo cataion
THE ONE THO
Simone
Standard
12,800
50
$ 30
50
$ 264,000
307,200
220,800
$ 792,000
Kako
Premium
3,200
25
$ 64
75
13.
Unit cost
Standard
Premium
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