Question
Yancey Company expects to produce 2,020 units in January that will require 12,120 hours of direct labor and 2,250 units in February that will
Yancey Company expects to produce 2,020 units in January that will require 12,120 hours of direct labor and 2,250 units in February that will require 13,500 hours of direct labor. Yancey budgets $5 per unit for variable manufacturing overhead; $1,800 per month for depreciation; and $64,385 per month for other fixed manufacturing overhead costs. Prepare Yancey'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.) VOH cost per unit Budgeted VOH Yancey Company Manufacturing Overhead Budget Two Month Ended January 31 and February 28 Budgeted FOH Depreciation Other FOH costs Total budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate January February Total
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