Yandell Company expects to produce 2,010 units in January that will require 4,020 hours of direct labor and 2,280 units in February

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Yandell
Company expects to produce
2,010
units in
January
that will require
4,020
hours of direct labor and
2,280
units in
February
that will require
4,560
hours of direct labor.
Yandell
budgets
$11
per unit for variable manufacturing​ overhead;
$1,700
per month for​ depreciation; and
$21,895
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.)
 
Yandell Company
Manufacturing Overhead Budget
Two Month Ended January 31 and February 28
 
January
February
Total
(1) Budgeted units to be produced
2,010
 
 
VOH cost per unit
$11
$11
$11
Budgeted VOH
$22,110
 
 
Budgeted FOH
 
 
 
Depreciation
1,700
1,700
3,400
Other FOH costs
21,895
21,895
43,790
Total budgeted FOH
23,595
23,595
47,190
Budgeted manufacturing overhead costs
 
 
 
 
 
 
 
 
Direct labor hours
 
 
 
Budgeted manufacturing overhead costs
 
 
 
Predetermined overhead allocation rate
 
 
 
(1) 
 
 
 
Budgeted units to be produced
 
Budgeted units to be sold
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