Yunan Company Makes Three Models Of Jump Drives In Its

Yunan Company makes three models of jump drives in its factory: J512, J1G, and J4G. The expected overhead costs for the next fiscal year are as follows: 

Yunan uses labor hours as the cost driver to allocate overhead cost. Budgeted labor hours for the products are as follows: 


a. Allocate the budgeted overhead costs to the products.

b. Provide a possible explanation as to why Yunan chose labor hours, instead of machine hours, as the allocation base. 

Posted in Uncategorized