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	$211,000
Gas	57,000
Indirect labor	170,000
Supervision	74,500
Depreciation on equipment	53,000
Depreciation on the buliding	41,000
Rental of special equipment	13,000
Electricity (for lighting, heating, and air conditioning)	28,100
Telephone	5,000
Landscaping service	2,000
Other overhead	60,000

In the coming year, Johnston expects to powder coat 150,000 units. Each unit takes 1.4 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:

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	fill in the blank 943b4b072fadfc6_1
Variable overhead rate	$fill in the blank 943b4b072fadfc6_2	per direct labor hour
Total fixed overhead	$fill in the blank 943b4b072fadfc6_3

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	fill in the blank 39be26fa5ff4007_1
Variable overhead rate	$fill in the blank 39be26fa5ff4007_2
Budgeted variable overhead	$fill in the blank 39be26fa5ff4007_3
Budgeted fixed overhead	fill in the blank 39be26fa5ff4007_4
Total budgeted overhead	$fill in the blank 39be26fa5ff4007_5

Calculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent.

Fixed overhead rate	$fill in the blank bb845e0dc02cfd3_1 per direct labor hour
Total overhead rate	$fill in the blank bb845e0dc02cfd3_2 per direct labor hour

3. What if Johnston had expected to make 148,000 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 1809b1f60fb0072_1

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	fill in the blank 692910003fed02a_1
Variable overhead rate	$fill in the blank 692910003fed02a_2
Budgeted variable overhead	$fill in the blank 692910003fed02a_3
Budgeted fixed overhead	fill in the blank 692910003fed02a_4
Total budgeted overhead	$fill in the blank 692910003fed02a_5

Calculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent.

Fixed overhead rate	$fill in the blank 07be0ffe0005fdd_1 per direct labor hour
Total overhead rate	$fill in the blank 07be0ffe0005fdd_2 per direct labor hour