Exercise 9-34 and 9-35 (Algo) [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: Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Standard 11,200 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: $ 231,000 257,250 193,200 $681,450 50 $ 30 50 a. Using current costing system b. Using proposed ABC system Premium 2,800 25 $ 64 75 Exercise 9-35 (algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premiurg, using the proposed ABC system at Benton. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Unit cost Standard Premium
Exercise 9-34 and 9-35 (Algo) [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: Units produced Production runs per quarter Direct materials cost per unit Direct labor cost per unit Supervision Setup labor Incoming inspection Total overhead Standard 11,200 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: $ 231,000 257,250 193,200 $681,450 50 $ 30 50 a. Using current costing system b. Using proposed ABC system Premium 2,800 25 $ 64 75 Exercise 9-35 (algo) Activity-Based Costing (LO 9-4) Required: a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor costs as the allocation basis for overhead). b. Compute the unit costs for the two products, Standard and Premiurg, using the proposed ABC system at Benton. Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. Unit cost Standard Premium
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter9: Profit Planning And Flexible Budgets
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Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Exercise 9-34 and 9-35 (Algo)
[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:
Units produced
Production runs per quarter
Direct materials cost per unit
Direct labor cost per unit
Supervision
Setup labor
Incoming inspection
Total overhead
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:
Standard
11,200
50
$ 30
50
$ 231,000
257,250
193,200
$ 681,450
Prenium
2,800
25
$ 64
75
Exercise 9-35 (algo) Activity-Based Costing (LO 9-4)
a. Using current costing system
b. Using proposed ABC system
Required:
a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor
costs as the allocation basis for overhead).
b. Compute the unit costs for the two products, Standard and Premiurg, using the proposed ABC system at Benton.
Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
Unit cost
Standard
Premium](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3a0202f-f091-448b-bf9b-266eeec70de0%2F1a8054d7-70a8-408a-bad0-de922d422f95%2F10qp0tl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 9-34 and 9-35 (Algo)
[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:
Units produced
Production runs per quarter
Direct materials cost per unit
Direct labor cost per unit
Supervision
Setup labor
Incoming inspection
Total overhead
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:
Standard
11,200
50
$ 30
50
$ 231,000
257,250
193,200
$ 681,450
Prenium
2,800
25
$ 64
75
Exercise 9-35 (algo) Activity-Based Costing (LO 9-4)
a. Using current costing system
b. Using proposed ABC system
Required:
a. Compute the unit costs for the two products, Standard and Premium, using the current costing system at Benton (using direct labor
costs as the allocation basis for overhead).
b. Compute the unit costs for the two products, Standard and Premiurg, using the proposed ABC system at Benton.
Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places.
Unit cost
Standard
Premium
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