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- Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the otal fixed overhead for the coming year. When required, round your answers to the nearest cent and use the rounded answers in ubsequent requirements. Direct labor hours Variable overhead rate per direct labor hour Total fixed overhead

- Calculate the number of direct labor hours Johnston must budget for the coming year. Calculate the variable overhead rate. Calculate the otal fixed overhead for the coming year. When required, round your answers to the nearest cent and use the rounded answers in ubsequent requirements. Direct labor hours Variable overhead rate per direct labor hour Total fixed overhead

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3.1.2

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 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 Variable overhead rate Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead Calculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent. Fixed overhead rate per direct labor hour Total overhead rate per direct labor hour
Transcribed Image Text: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 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 Variable overhead rate Budgeted variable overhead Budgeted fixed overhead Total budgeted overhead Calculate the fixed overhead rate and the total overhead rate. If required, round your answers to the nearest cent. Fixed overhead rate per direct labor hour Total overhead rate per direct labor hour
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 $213,000 Gas 53,000 Indirect labor 180,000 Supervision 75,000 Depreciation on equipment 49,000 Depreciation on the buliding 41,000 Rental of special equipment 13,500 Electricity (for lighting, heating, and air conditioning) 28,200 Telephone 4,500 Landscaping service 1,400 Other overhead 54,000 In the coming year, Johnston expects to powder coat 190,000 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.
Transcribed Image Text: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 $213,000 Gas 53,000 Indirect labor 180,000 Supervision 75,000 Depreciation on equipment 49,000 Depreciation on the buliding 41,000 Rental of special equipment 13,500 Electricity (for lighting, heating, and air conditioning) 28,200 Telephone 4,500 Landscaping service 1,400 Other overhead 54,000 In the coming year, Johnston expects to powder coat 190,000 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.
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