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Benton Corporation manufactures computer microphones, which come in two models: Standard and Premium. Data for...

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Accounting

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?
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.
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