Required information

Skip to question

[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:

	Standard	Premium
Units produced	13,600	3,400
Production runs per quarter	50	25
Direct materials cost per unit	$ 30	$ 64
Direct labor cost per unit	50	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	$ 280,500
Setup labor	284,325
Incoming inspection	234,600
Total overhead	$ 799,425

Required:

Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter?

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.

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: 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: Required: a. Benton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter? o. 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