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 $225,000 Gas 60,000 Indirect labor 173,000 Supervision 78,000 Depreciation on equipment 52,000 Depreciation on the buliding 47,000 Rental of special equipment 14,500 Electricity (for lighting, heating, and air conditioning) 28,800 Telephone 4,400 Landscaping service 1,400 Other overhead 51,000 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 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: Question Content Area 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 1d3a3701004204d_1 Variable overhead rate $fill in the blank 1d3a3701004204d_2 per direct labor hour Total fixed overhead $fill in the blank 1d3a3701004204d_3 Question Content Area 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 CompanyOverhead BudgetFor the Coming Year Budgeted direct labor hours fill in the blank 689ae4ffbf9cfc3_1 Variable overhead rate $fill in the blank 689ae4ffbf9cfc3_2 Budgeted variable overhead $fill in the blank 689ae4ffbf9cfc3_3 Budgeted fixed overhead fill in the blank 689ae4ffbf9cfc3_4 Total budgeted overhead $fill in the blank 689ae4ff

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 $225,000 Gas 60,000 Indirect labor 173,000 Supervision 78,000 Depreciation on equipment 52,000 Depreciation on the buliding 47,000 Rental of special equipment 14,500 Electricity (for lighting, heating, and air conditioning) 28,800 Telephone 4,400 Landscaping service 1,400 Other overhead 51,000 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 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: Question Content Area 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 1d3a3701004204d_1 Variable overhead rate $fill in the blank 1d3a3701004204d_2 per direct labor hour Total fixed overhead $fill in the blank 1d3a3701004204d_3 Question Content Area 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 CompanyOverhead BudgetFor the Coming Year Budgeted direct labor hours fill in the blank 689ae4ffbf9cfc3_1 Variable overhead rate $fill in the blank 689ae4ffbf9cfc3_2 Budgeted variable overhead $fill in the blank 689ae4ffbf9cfc3_3 Budgeted fixed overhead fill in the blank 689ae4ffbf9cfc3_4 Total budgeted overhead $fill in the blank 689ae4ff

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. Question Content Area

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	$225,000
Gas	60,000
Indirect labor	173,000
Supervision	78,000
Depreciation on equipment	52,000
Depreciation on the buliding	47,000
Rental of special equipment	14,500
Electricity (for lighting, heating, and air conditioning)	28,800
Telephone	4,400
Landscaping service	1,400
Other overhead	51,000

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 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:

Question Content Area

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 1d3a3701004204d_1
Variable overhead rate	$fill in the blank 1d3a3701004204d_2	per direct labor hour
Total fixed overhead	$fill in the blank 1d3a3701004204d_3

Question Content Area

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 CompanyOverhead BudgetFor the Coming Year

Budgeted direct labor hours	fill in the blank 689ae4ffbf9cfc3_1
Variable overhead rate	$fill in the blank 689ae4ffbf9cfc3_2
Budgeted variable overhead	$fill in the blank 689ae4ffbf9cfc3_3
Budgeted fixed overhead	fill in the blank 689ae4ffbf9cfc3_4
Total budgeted overhead	$fill in the blank 689ae4ffbf9cfc3_5

Question Content Area

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 60453906cffa07c_1 per direct labor hour
Total overhead rate	$fill in the blank 60453906cffa07c_2 per direct labor hour

Question Content Area

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 eb17ec022046045_1

Question Content Area

Prepare a new overhead budget. If required, round your answers to the nearest cent.

Johnston CompanyNew Overhead BudgetFor the Coming Year

Budgeted direct labor hours	fill in the blank 83711a03204b049_1
Variable overhead rate	$fill in the blank 83711a03204b049_2
Budgeted variable overhead	$fill in the blank 83711a03204b049_3
Budgeted fixed overhead	fill in the blank 83711a03204b049_4
Total budgeted overhead	$fill in the blank 83711a03204b049_5

Question Content Area

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 23993504c00f04d_1 per direct labor hour
Total overhead rate	$fill in the blank 23993504c00f04d_2 per direct labor hour

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