Overhead Budget

Johnston Company cleans and applies powder coat paint to metal items on a job-orderbasis. Johnston has budgeted the following amounts for various overhead categories in the coming year.

Supplies	$215,000
Gas	52,000
Indirect labor	176,000
Supervision	76,500
Depreciation on equipment	52,000
Depreciation on the buliding	48,000
Rental of special equipment	13,500
Electricity (for lighting, heating, and air conditioning)	28,200
Telephone	5,000
Landscaping service	1,700
Other overhead	51,000

In the coming year, Johnston expects to powder coat 190,000 units. Each unit takes 1.5 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 thenumber 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
Variable overhead rate	$	per direct labor hour
Total fixed overhead	$