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 10,400 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: $ 214,500 249,600 179,400 $ 643,500 Premium 2,600 25 $ 64 75
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 10,400 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: $ 214,500 249,600 179,400 $ 643,500 Premium 2,600 25 $ 64 75
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter6: Process Cost Accounting—additional Procedures; Accounting For Joint Products And By-products
Section: Chapter Questions
Problem 3E: The following data appeared in the accounting records of Craig Manufacturing Inc., which uses the...
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![[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:
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
10,400
50
$ 30
50
$ 214,500
249,600
179,400
$ 643,500
a. Overhead rate
b. Supervision
b. Setup labor
b. Incoming inspection
Premium
2,600
25
$ 64
75
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.
% of direct labor cost
% of direct labor cost
per production run
% of direct material cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8ad5c3b3-0e2c-4016-9024-adf9ec248309%2Fe53879a8-41dc-4d6e-9474-cdd6b304534b%2F4w0cx4h_processed.png&w=3840&q=75)
Transcribed Image Text:[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:
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
10,400
50
$ 30
50
$ 214,500
249,600
179,400
$ 643,500
a. Overhead rate
b. Supervision
b. Setup labor
b. Incoming inspection
Premium
2,600
25
$ 64
75
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.
% of direct labor cost
% of direct labor cost
per production run
% of direct material cost
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