**Benton Corporation Manufacturing Data Analysis**Benton Corporation manufactures computer microphones, offering two models: Standard and Premium. Below is the quarterly production and cost data for each model:| | Standard | Premium ||----------------------------|----------|---------|| Units produced | 10,400 | 2,600 || Production runs per quarter| 50 | 25 || Direct materials cost per unit | $30 | $64 || Direct labor cost per unit | $50 | $75 |**Manufacturing Overhead Components:**The manufacturing overhead is divided into three primary functions: supervision, setup labor, and incoming material inspection. The following data represents the overhead costs for one quarter:- **Supervision:** $214,500- **Setup labor:** $249,600- **Incoming inspection:** $179,400**Total Overhead Costs:** $643,500**Requirements:**a. Benton calculates overhead based on direct labor cost. Determine the predetermined overhead rate for the quarter.b. Benton plans to transition to an Activity-Based Costing (ABC) system. Identified cost drivers include:- **Supervision:** Based on direct labor cost- **Setup labor:** Based on production runs- **Incoming inspection:** Based on direct material cost**Note:** Provide answers rounded to two decimal places.**Cost Driver Rates Calculation Table:**| Cost Driver | Calculation Method ||-----------------------------|-------------------|| a. Overhead rate | % of direct labor cost || b. Supervision | % of direct labor cost || b. Setup labor | per production run || b. Incoming inspection | % of direct material cost |

Predetermined overhead rate is the rate used for applying overhead cost to the jobs, where the predetermined overhead rate is based on estimates.Calculation of direct labor cost.Standard.Premium.Overhead rateSupervisionSetup Labor.Incoming inspection.A. Overhead Rate90.00% of direct labor costB. Supervision30.00% of direct labor costC. Setup Labor3328.00per production runD. Incoming supervision37.50% of direct materials cost

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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: 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

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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