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 $$222,000$

Gas $58,000$

Indirect labor $179,000$

Supervision $74,000$

Depreciation on equipment $46,000$

Depreciation on the buliding $49,000$

Rental of special equipment $14,500$

Electricity $($for lighting, heating, and air conditioning$)27,700$

Telephone $4,000$

Landscaping service $1,900$

Other overhead $54,000$

In the coming year, Johnston expects to powder coat $140,000$ units. Each unit takes $1\mathrm{.}2$ 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:

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 fill in the blank $4$f$4399$fd$406$b$04$e$\_1$

Variable overhead rate $fill in the blank $4$f$4399$fd$406$b$04$e$\_2$

per direct labor hour

Total fixed overhead $fill in the blank $4$f$4399$fd$406$b$04$e$\_3$

Question Content Area

$2.$ 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 dd$025$c$047$fcefa$9\_1$

Variable overhead rate $fill in the blank dd$025$c$047$fcefa$9\_2$

Budgeted variable overhead $fill in the blank dd$025$c$047$fcefa$9\_3$

Budgeted fixed overhead fill in the blank dd$025$c$047$fcefa$9\_4$

Total budgeted overhead $fill in the blank dd$025$c$047$fcefa$9\_5$

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 $fill in the blank $273$d$22$fa$3021$ff$3\_1$

per direct labor hour

Total overhead rate $fill in the blank $273$d$22$fa$3021$ff$3\_2$

per direct labor hour

Question Content Area

$3.$ What if Johnston had expected to make $138,000$ 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 f$739$f$807$e$057$f$8$b$\_1$

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 fill in the blank $5$b$285$f$001041008\_1$

Variable overhead rate $fill in the blank $5$b$285$f$001041008\_2$

Budgeted variable overhead $fill in the blank $5$b$285$f$001041008\_3$

Budgeted fixed overhead fill in the blank $5$b$285$f$001041008\_4$

Total budgeted overhead $fill in the blank $5$b$285$f$001041008\_5$

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 $fill in the blank $20$e$957$fef$001049\_1$

per direct labor hour

Total overhead rate $fill in the blank $20$e$957$fef$001049\_2$

per direct labor hourCalculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent.

Fixed overhead rate s

per direct labor hour

Total overhead rate $

per direct labor hour

What if Johnston had expected to make $138,000$ 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.

Prepare a new overhead budget. If required, round your answers to the nearest cent.

Johnston Company

New Overhead Budget

For the Coming Year

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

s

per direct labor hour