Yada Company expects to produce 2,010 units in January that will require 10,050 hours of...
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Accounting
Yada Company expects to produce 2,010 units in January that will require 10,050 hours of direct labor and 2,200 units in February that will require 11,000 hours of direct labor. Yada budgets $2 per unit for variable manufacturing overhead; $1,800 per month for depreciation; and $130,815 per month for other fixed manufacturing overhead costs. Prepare Yada'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.) 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
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