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.

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.

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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