! Required information [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 11,600 50 $30 50 $ 239,250 278,400 200, 100 $ 717,750 a. Overhead rate b. Supervision b. Setup labor b. Incoming inspection Premium 2,900 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
! Required information [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 11,600 50 $30 50 $ 239,250 278,400 200, 100 $ 717,750 a. Overhead rate b. Supervision b. Setup labor b. Incoming inspection Premium 2,900 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![!
Required information
[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
11,600
50
$30
50
$ 239,250
278,400
200, 100
$ 717,750
a. Overhead rate
b. Supervision
b. Setup labor
b. Incoming inspection
Premium
2,900
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%2F2d733b96-54fc-43d7-9853-a5031811ca1e%2F6cbbd654-9974-4d43-b9ca-eb7cc150b197%2Fi90ebz4_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[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
11,600
50
$30
50
$ 239,250
278,400
200, 100
$ 717,750
a. Overhead rate
b. Supervision
b. Setup labor
b. Incoming inspection
Premium
2,900
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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