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: Round "Incoming inspection" answer to $1$ decimal place.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

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:

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

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.