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Overhead Budget Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Jonnston has budgeted the following amounts for various
Overhead Budget Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Jonnston has budgeted the following amounts for various overhead categories in the coming year Supplies Gas Indirect labor Supervision Depreciation on equipment Depreciation on the buliding Rental of special equipment Electricity (for lighting, heating, and air conditioning) Telephone Landscaping service Other overhead $218,000 54,000 172,000 75,000 54,000 47,000 14,000 27,500 4,900 1,200 54,000 In the coming year, Johnston expects to powder coat 160,000 units. Each unit takes 1:2 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: 1, Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the vanable overhead rate. Calculate the total fixed overhead for the coming year. When required, round your answers to the nearest cent and use the rounded answer in subsecuent recuirements 1.2 X Direct labor hours Variable overhead rate Total fixed overhead per direct labor hou
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