Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for a representative quarter for the two models follow:

Standard Premium

Units produced $10,0002,500$

Production runs per quarter $5025$

Direct materials cost per unit $ $30$ $ $64$

Direct labor cost per unit $5075$

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 $ $206,250$

Setup labor $240,000$

Incoming inspection $172,500$

Total overhead $ $618,750$

Exercise $9-35($Static$)$ Activity$-$Based Costing $($LO $9-4)$

Required:

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$).$

Compute the unit costs for the two products, Standard and Premium, using the proposed ABC system at Benton.