Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Johnstcei Company deans and applies powder coat paint to metal items on a fob-order banis. Johnston thas budoeted the following amounts for vatious averhesd categories

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Johnstcei Company deans and applies powder coat paint to metal items on a fob-order banis. Johnston thas budoeted the following amounts for vatious averhesd categories in the coming year. In the corning yeat, Johnston eapects to powder coot 190.000 units. Iach unh takes 12 direct labor haurs, Johnston has found that supplies and gas (used to run the drying ovens-all units pass through the deving ovens after powder coat paint is appled) teod to vary wath the number of unit: eroduced. All other oworhead categoriec are considered to be fixed. Hequired: 1. Calculate the number of direct labor hoors Johiston nust bodget for the coming woar- Caloulate the variable overhead rate. Catculate the tokal foced overtiead for the cotning year, When requered, round your ariswers to the nearest cent and use the rocefed answers in subsequent requtrements. 1. Calculate the number of direct labor hours Johinston most budget for the coming veac Calculate the variable overtiead rate. Calculate the total fixed oveshead for the coming year. When required, round your answers to the pearest cent and use the rounded answers in subsequent requirements. 2. Prepare an orerhead budget for Johnston for the coming year, show the total variable overtead, total fixed overhead, and total ovechedd. When required, round your answers to the nearest cent. Calculate the floed overticad rate and the tokal overhead rate. If required, round your anwers to the nearest cent. 3. Whart if Jetuston had expected to make 108,000 wenits neat year? Assume that the variable overhead per unit does not chasge and the total faced overthead amounts do not change, Caloulate the new beidgeted direct labor hours. Prepare a new overtiend budget, it required. found your answers to the nearest cent Calculate then fixed oreithead rate and the tokal overthead rate, If required, round your antwers to the noacest cent. Fined gverhead rate per diect laber hout 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 per direct labor hour

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Challenges In Advanced Management Accounting

Authors: The Open University

1st.0th Edition

B01D8X506Y

More Books

Students also viewed these Accounting questions