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 Standard 10,000 50 Premium Direct materials cost per unit Direct labor cost per unit $ 30 50 2,500 25 $ 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 $ 206,250 240,000 172,500 $ 618,750 rcise 9-34 (Static) Activity-Based Costing and Cost Driver Rates (LO 9-4) uired: enton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter? he CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the following ost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection. ompute the cost driver rates for the proposed system at Benton.
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 Standard 10,000 50 Premium Direct materials cost per unit Direct labor cost per unit $ 30 50 2,500 25 $ 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 $ 206,250 240,000 172,500 $ 618,750 rcise 9-34 (Static) Activity-Based Costing and Cost Driver Rates (LO 9-4) uired: enton currently applies overhead on the basis of direct labor cost. What is the predetermined overhead rate for the quarter? he CFO and the plant controller at Benton are thinking of adopting an ABC system. They have tentatively chosen the following ost drivers: direct labor cost for supervision, production runs for setup labor, and direct material dollars for incoming inspection. ompute the cost driver rates for the proposed system at Benton.
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter12: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 12.16E: Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that...
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