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	$216,000
Gas	58,000
Indirect labor	172,000
Supervision	76,000
Depreciation on equipment	46,000
Depreciation on the buliding	47,000
Rental of special equipment	14,500
Electricity (for lighting, heating, and air conditioning)	27,200
Telephone	4,100
Landscaping service	1,200
Other overhead	58,000

In the coming year, Johnston expects to powder coat 170,000 units. Each unit takes 1.2 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 bf6e46004fe9fed_1
Variable overhead rate	$fill in the blank bf6e46004fe9fed_2	per direct labor hour
Total fixed overhead	$fill in the blank bf6e46004fe9fed_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 237d6c07207dfcf_1
Variable overhead rate	$fill in the blank 237d6c07207dfcf_2
Budgeted variable overhead	$fill in the blank 237d6c07207dfcf_3
Budgeted fixed overhead	fill in the blank 237d6c07207dfcf_4
Total budgeted overhead	$fill in the blank 237d6c07207dfcf_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 d91129fef060f90_1 per direct labor hour
Total overhead rate	$fill in the blank d91129fef060f90_2 per direct labor hour

3. What if Johnston had expected to make 168,000 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 7e0594fd5fe5f90_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 82210302cf9b02c_1
Variable overhead rate	$fill in the blank 82210302cf9b02c_2
Budgeted variable overhead	$fill in the blank 82210302cf9b02c_3
Budgeted fixed overhead	fill in the blank 82210302cf9b02c_4
Total budgeted overhead	$fill in the blank 82210302cf9b02c_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 a17f80f81fdcfa6_1 per direct labor hour
Total overhead rate	$fill in the blank a17f80f81fdcfa6_2 per direct labor hour