eBook Overhead Budget Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston has budgeted the following amounts for various overhead categories in the coming year. Supplies Gas Indirect labor Supervision $213,000 58,000 179,000 73,500 Depreciation on equipment 47,000 Depreciation on the buliding 46,000 Rental of special equipment 14,500 Electricity (for lighting, heating, and air conditioning) 28,900 Telephone 4,100 Landscaping service 1,800 Other overhead 55,000 In the coming year, Johnston expects to powder coat 120,000 units. Each unit takes 1.2 direct labor hours. Johnston has found that supplies and gas (used to run the drying ovens-all units pass through the drying ovens after powder coat paint is applied) tend to vary with the number of units produced. All other overhead categories are considered to be fixed. Required: 1. Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the total fixed overhead for the coming year. When required, round your answers to the nearest cent and use the rounded answers in subsequent requirements. 1. Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the total fixed overhead for the coming year. When required, round your answers to the nearest cent and use the rounded answers in subsequent requirements. Direct labor hours Variable overhead rate 144,000 per direct labor hour Total fixed overhead Feedback Check My Work Partially correct 2. Prepare an overhead budget for Johnston for the coming year. Show the total variable overhead, total fixed overhead, and total overhead. When required, round your answers to the nearest cent. Johnston Company Overhead Budget For the Coming Year Budgeted direct labor hours Variable overhead rate Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead eBook Prepare an overhead budget using the amounts calculated in Requirement 1. Calculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent. Fixed overhead rate Total overhead rate per direct labor hour per direct labor hour Feedback Check My Work Prepare an overhead budget using the amounts calculated in Requirement 1. 3. What if Johnston had expected to make 118,000 units next year? Assume that the variable overhead per unit does not change and the total fixed overhead amounts do not change. Calculate the new budgeted direct labor hours. Feedback Check My Work Calculate the new number of budgeted direct labor hours given the change in units. Use this information to prepare a new overhead budget. Also, use the new number of direct labor hours to calculate a revised fixed overhead rate and total overhead rate. Prepare a new overhead budget. If required, round your answers to the nearest cent. Johnston Company New Overhead Budget For the Coming Year Budgeted direct labor hours Variable overhead rate Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead Feedback Check My Work Calculate the new number of budgeted direct labor hours given the change in units. Use this information to prepare a new overhead budget. Also, use the new number of direct labor hours to calculate a revised fixed overhead rate and total overhead rate. Calculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent. Fixed overhead rate per direct labor hour Total overhead rate Feedback per direct labor hour