In the coming year, Johnston expects to powder coat 120,000 units. Each unit takes 1.3 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. 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. x 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. 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 X per direct labor hour X per direct labor hour