This Question: 8 pts 4) 35 of 39(29 complete) This Test: 125 pts possible Questi

Question

This Question: 8 pts 4) 35 of 39(29 complete) This Test: 125 pts possible Question Help Yandel Company expects to produce 2.040 units in January that will require 4,080 hours of direct labor and 2,280 units in February that wll require 4,560 hours of direct labor. Yandell budgets $2 per unit for variable manufacturing overhead, $1,700 per month for depreciation: and $28,540 per month for other fixed manufacturing overhead costs. Prepare Yandell's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using dret labor hours as the allocation base. Abbreviations used: V H-vanable manufacturing overhead; FOH-fixed manufacturing overhead.) Yandell Company Manufacturing Overhead Budget Two Month Ended January 31 and February 28 JanuaryFebruary Total VOH cost per unit Budgeted VOH Budgeted FOH Depreciation Other FOH costs Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate

Explanation / Answer

Yandell Company Manufacturing OH Budget Two Month Ended January 31 and February 28 January February Total Units Sold 2040 2280 4320 VOH Cost Per Unit 2.00 2.00 2.00 Budgeted VOH 4080 4560 8640 (Units Sold* VOH CostPU) Budgeted FOH: Depreciation 1,700 1,700 3,400 Other FOH Costs 28540 28540 57,080 Total Budgeted FOH 30,240 30,240 60,480 Budgeted Manuafcturing Overhead Costs 34,320 34,800 69,120 Direct Labor Hours 4080 4560 8640 Budgeted Manuafcturing Overhead Costs 69,120 Predetermined Overhead Allocation Rate 8.00 (Budgeted MOH/Total DLH)

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