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Part $1$

Yada Company expects to produce $2$ comma $040$ units in January that will require $12$ comma $240$ hours of direct labor and $2$ comma $220$ units in February that will require $13$ comma $320$ hours of direct labor. Yada Company budgets $ $8$ per unit for variable manufacturing$$ overhead; $ $1$ comma $200$ per month for$$ depreciation; and $ $96$ comma $780$ per month for other fixed manufacturing overhead costs. Prepare Yada Company$\text{'}$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.$)$

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Part $1$

Yada Company

Manufacturing Overhead Budget

Two Month Ended January $31$ and February $28$

January

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