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	$220,000
Gas	53,000
Indirect labor	180,000
Supervision	74,500
Depreciation on equipment	55,000
Depreciation on the buliding	41,000
Rental of special equipment	11,000
Electricity (for lighting, heating, and air conditioning)	27,000
Telephone	4,500
Landscaping service	1,000
Other overhead	57,000

In the coming year, Johnston expects to powder coat 130,000 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 3fa0f306b002f8e_1
Variable overhead rate	$fill in the blank 3fa0f306b002f8e_2	per direct labor hour
Total fixed overhead	$fill in the blank 3fa0f306b002f8e_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 6af591f8901affe_1
Variable overhead rate	$fill in the blank 6af591f8901affe_2
Budgeted variable overhead	$fill in the blank 6af591f8901affe_3
Budgeted fixed overhead	fill in the blank 6af591f8901affe_4
Total budgeted overhead	$fill in the blank 6af591f8901affe_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 0a3ae6fe5f95026_1 per direct labor hour
Total overhead rate	$fill in the blank 0a3ae6fe5f95026_2 per direct labor hour

3. What if Johnston had expected to make 128,000 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 0558750bafbc003_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 36772603d07e012_1
Variable overhead rate	$fill in the blank 36772603d07e012_2
Budgeted variable overhead	$fill in the blank 36772603d07e012_3
Budgeted fixed overhead	fill in the blank 36772603d07e012_4
Total budgeted overhead	$fill in the blank 36772603d07e012_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 11a949f69f94ff1_1 per direct labor hour
Total overhead rate	$fill in the blank 11a949f69f94ff1_2 per direct labor hour