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Required information [The following information applies to the questions displayed below] Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium.
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: 4 Units produced Profiction runs per quarter Direct materials cost per unit Direct labor cost per unit Standard 10,000 2,500 25 130 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 Tatal verhead $206,250 240,000 172,500 118,750 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. Overhead rate Supervision Setup labor Incoming inspection 90% of direct labor cost 30% of direct labor cost per production run 37.5% of direct material cost C
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