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Exercise 9-34 and 9-35 (Algo) [The following information applies to the questions displayed below.] Benton Corporation manufactures computer microphones, which come in two models:
Exercise 9-34 and 9-35 (Algo) [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 Standard 18,000 50 Premium 4,500 25 $ 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 $ 371,250 308,250 310,500 $ 990,000 Check my Exercise 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 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
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