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	$219,000
Gas	58,000
Indirect labor	172,000
Supervision	74,000
Depreciation on equipment	51,000
Depreciation on the buliding	41,000
Rental of special equipment	14,500
Electricity (for lighting, heating, and air conditioning)	29,000
Telephone	4,700
Landscaping service	1,300
Other overhead	55,000

In the coming year, Johnston expects to powder coat 190,000 units. Each unit takes 1.2 direct labor hours. Johnston has found that supplies and gas (used to run the drying ovensall 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:

Question Content Area

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
Total fixed overhead

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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

Question Content Area

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

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3. What if Johnston had expected to make 188,000 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. fill in the blank 6cb1affe006ff99_1

Question Content Area

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

Question Content Area

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