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 followingcost 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 rateb. Supervisionb. Setup laborb. Incoming inspection% of direct labor cost% of direct labor costper production run% of direct material cost Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for arepresentative quarter for the two models follow:Units producedProduction runs per quarterDirect materials cost per unitDirect labor cost per unitSupervisionSetup laborIncoming inspectionTotal overheadManufacturing overhead in the plant has three main functions: supervision, setup labor, and incoming material inspection.Data on manufacturing overhead for a representative quarter follow:Standard11,60050$ 3050$ 239,250278,400200, 100$ 717,750a. Overhead ratePremium2,90025$ 6475Exercise 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 followingcost 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

The overhead rate is based on the estimated overhead cost and estimated total usage for the period.…

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

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

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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1. SIP Inc. (SIP) is plastic injection molding company specializing in front-end grilles. Bilchew Numbers wants to look at using an activity-based costing system. For 2021, he estimated overhead costs of $12,560,000 to be allocated using an activity-based costing system (see the table below). Bilchew also estimated that direct labour will be paid at the rate of $15 per hour. Cost Driver Activity Cost Pool Estimated Cost Total Quantity of Allocation Base (allocation base) Indirect materials $ 1,450,000 Direct materials $6,590,910 Indirect labour and 2,000,000 Direct labour 100,000 hours supervision Utilities 3,598,000 Power 20,000 kilowatt-hours (kWh) consumption Inspection 4,200,000 Inspection 15,000 inspections Depreciation 1,312,000 Machine usage 160,000 machine-hours $12,560,000 During January 2021, Bilchew worked on two jobs, which consumed the following resources: Job 2021-A1 Job 2021-A2 Direct materials cost $ 6,500 $ 22,000 Direct labour cost $42,000 $165,000 Machine-hours 1,800…
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Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation Indirect labor Factory electricity Indirect materials Selling expenses Tortilla chips Potato chips Pretzels Administrative expenses Total costs Factory overhead is allocated to the three products on the basis of processing hours. The products had the following production budget and processing hours per case: I Budgeted Volume (Cases) Total If required $20,857 51,690 5,894 3,300 2,400 5,700 11,400 12,243 29,019 16,323 $136,026 Processing Hours Per Case 0.10 0.15 0.12
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Bluefield Corporation has two product lines, A and B. Bluefield has identified the following information about its overhead and potential cost drivers: Total overhead Cost drivers Number of labor hours Number of machine hours Required: 1. Suppose Bluefield Corporation uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 64 percent of the labor hours and Product B requires 36 percent. 2. Suppose Bluefield uses a traditional costing system with machine hours as the cost driver. Determine the amount of overhead assigned to each product line if Product A requires 17,500 machine hours and Product B requires 32,500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 $ 79,000 2,200 50,000 Suppose Bluefield Corporation uses a traditional costing system with number of labor hours as the cost driver. Determine the amount of overhead assigned to…
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