Question
Yeaman Company expects to produce 2,080 units in January that will require 6,240 hours of direct labor and 2,210 units in February that will require
Yeaman Company expects to produce 2,080 units in January that will require 6,240 hours of direct labor and 2,210 units in February that will require 6,630 hours of direct labor. Yeaman budgets $4 per unit for variable manufacturing overhead; $2,000 per month for depreciation; and $34,465 per month for other fixed manufacturing overhead costs. Prepare Yeaman's manufacturing overhead budget for January and February, including the predetermined overhead allocation rate using direct labor hours as the allocation base.
Yeaman Company | ||||||
Manufacturing Overhead Budget | ||||||
Two Month Ended January 31 and February 28 | ||||||
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VOH cost per unit |
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Budgeted VOH |
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Budgeted FOH |
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Depreciation |
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Other FOH costs |
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Total budgeted FOH |
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Budgeted manufacturing overhead costs |
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Direct labor hours |
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Budgeted manufacturing overhead costs |
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Predetermined overhead allocation rate |
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