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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 decimal places.
