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	$218,000
Gas	54,000
Indirect labor	174,000
Supervision	73,500
Depreciation on equipment	52,000
Depreciation on the buliding	46,000
Rental of special equipment	14,500
Electricity (for lighting, heating, and air conditioning)	28,000
Telephone	4,900
Landscaping service	1,700
Other overhead	59,000

In the coming year, Johnston expects to powder coat 120,000 units. Each unit takes 1.3 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 267c4a080067075_1
Variable overhead rate	$fill in the blank 267c4a080067075_2	per direct labor hour
Total fixed overhead	$fill in the blank 267c4a080067075_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 77c355fc7fc5069_1
Variable overhead rate	$fill in the blank 77c355fc7fc5069_2
Budgeted variable overhead	$fill in the blank 77c355fc7fc5069_3
Budgeted fixed overhead	fill in the blank 77c355fc7fc5069_4
Total budgeted overhead	$fill in the blank 77c355fc7fc5069_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 f623940b5fadff7_1 per direct labor hour
Total overhead rate	$fill in the blank f623940b5fadff7_2 per direct labor hour

3. What if Johnston had expected to make 118,000 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 2ac8c8fbc01300b_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 27b84302405dffc_1
Variable overhead rate	$fill in the blank 27b84302405dffc_2
Budgeted variable overhead	$fill in the blank 27b84302405dffc_3
Budgeted fixed overhead	fill in the blank 27b84302405dffc_4
Total budgeted overhead	$fill in the blank 27b84302405dffc_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 f97cb001dfd9fe5_1 per direct labor hour
Total overhead rate	$fill in the blank f97cb001dfd9fe5_2 per direct labor hour