Yandell Company expects to produce 2,090 units in January that will require 6,27

Question

Yandell Company expects to produce 2,090 units in January that will require 6,270 hours of direct labor and 2,220 units in February that will require 6,660 hours of direct labor. Yandell budgets $12 per unit for variable manufacturing overhead; $1,800 per month for depreciation; and $24,060 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 direct labor hours as the allocation base. (Abbreviations used: VOH variable manufacturing overhead; FOH fixed manufacturing overhead.) Manufacturing Overhead Budget Two Month Ended January 31 and February 28 February 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 Choose from any list or enter any number in the input fields and then click Check Answer.

Explanation / Answer

January February Total Units to be produced 2090 2220 4310 VOH cost per unit 12 12 12 Budgeted VOH 25080 26640 51720 Budgeted FOH Depreciation 1800 1800 3600 Other FOH costs 24060 24060 48120 Total budgeted FOH 25860 25860 51720 Budgeted manufacturing overhead costs 50940 52500 103440 Direct labor hours 6270 6660 12930 Budgeted manufacturing overhead costs 103440 Predetermined overhead allocation rate 8

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