Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a...
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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 Standard 10,000 50 Premium 2,500 25 Direct materials cost per unit Direct labor cost per unit $ 30 50 $ 64 75 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 $ 206,250 240,000 172,500 $ 618,750 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. a. Using current costing system b. Using proposed ABC system 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 Standard 10,000 50 Premium 2,500 25 Direct materials cost per unit Direct labor cost per unit $ 30 50 $ 64 75 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 $ 206,250 240,000 172,500 $ 618,750 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. a. Using current costing system b. Using proposed ABC system Unit cost Standard Premium
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a Using the current costing system For the current costing system overhead is allocated based on direct labor costs Lets calculate the overhead rate f... View the full answer
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