Yancey Company expects to produce 2,070 units in January that will require 12,42

Question

Yancey Company expects to produce 2,070 units in January that will require 12,420 hours of direct labor and 2,270 units in February that will require 13,620 hours of direct labor. Yancey budgets $5 per unit for variable manufacturing overhead, $2,100 per month for depreciation,and $117,250 per month for other fixed manufacturing overhead costs. Prepare Yancey's manufacturing overhead budget fofr January and February, including the predetfermined overhead allocation rate using direct labor hours as the allocation base.

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Manufacturing Overhead Budget January   February Total Budgeted units to be produced                   2,070                 2,270                 4,340 Variable overhead cost per unit                         5                         5                         5 Budgeted variable overhead   $          10,350 $          11,350 $          21,700 Budgeted fixed overhead: Depreciation                 2,100                 2,100                 4,200 Other Manufacturing Overhead            117,250            117,250            234,500 Total Budgeted Fixed Overhead            119,350            119,350            238,700 Budgeted manufacturing overhead costs $        129,700 $        130,700 $        260,400 Direct Labour Hours              12,420              13,620              26,040 Predetermined overhead allocation rate(260400/26040) $                  10

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