Yosko Company expects to produce 2,070 units in January that will require 4,140 hours of direct labor and 2,230 units in February that will require 4,460 hours of direct labor. Yosko Company budgets $6 per unit for variable manufacturing overhead; $2,100 per month for depreciation; and $10,800 per month for other fixed manufacturing overhead costs. Prepare Yosko Company'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 Yosko Company Manufacturing Overhead Budget Two Month Ended January 31 and February 28 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 January February Total
Yosko Company expects to produce 2,070 units in January that will require 4,140 hours of direct labor and 2,230 units in February that will require 4,460 hours of direct labor. Yosko Company budgets $6 per unit for variable manufacturing overhead; $2,100 per month for depreciation; and $10,800 per month for other fixed manufacturing overhead costs. Prepare Yosko Company'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 Yosko Company Manufacturing Overhead Budget Two Month Ended January 31 and February 28 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 January February Total
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
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Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Yosko Company expects to produce 2,070 units in January that will require 4,140 hours of direct labor and 2,230 units in February that will require 4,460 hours of direct labor. Yosko Company
budgets $6 per unit for variable manufacturing overhead; $2,100 per month for depreciation; and $10,800 per month for other fixed manufacturing overhead costs. Prepare Yosko Company'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
Yosko Company
Manufacturing Overhead Budget
Two Month Ended January 31 and February 28
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
January
February
Total
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