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 $222,000 Gas 57,000 Indirect labor 176,000 Supervision 77,000 Depreciation on equipment 54,000 Depreciation on the buliding 41,000 Rental of special equipment 10,000 Electricity (for lighting, heating, and air conditioning) 28,100 Telephone 4,800 Landscaping service 2,000 Other overhead 55,000 In the coming year, Johnston expects to powder coat 140,000 units. Each unit takes 1.4 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 1fd96efd9febfd2_1 Variable overhead rate $fill in the blank 1fd96efd9febfd2_2 per direct labor hour Total fixed overhead $fill in the blank 1fd96efd9febfd2_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 041ea006e06cfff_1 Variable overhead rate $fill in the blank 041ea006e06cfff_2 Budgeted variable overhead $fill in the blank 041ea006e06cfff_3 Budgeted fixed overhead fill in the blank 041ea006e06cfff_4 Total budgeted overhead $fill in the blank 041ea006e06cfff_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 0469cb07707c051_1 per direct labor hour Total overhead rate $fill in the blank 0469cb07707c051_2 per direct labor hour Question Content Area 3. What if Johnston had expected to make 138,000 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 7da05506a03ff91_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 e3deb6fcffec019_1 Variable overhead rate $fill in the blank e3deb6fcffec019_2 Budgeted variable overhead $fill in the blank e3deb6fcffec019_3 Budgeted fixed overhead fill in the blank e3deb6fcffec019_4 Total budgeted overhead $fill in the blank e3deb6fcffec019_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 18ea28fc700400b_1 per direct labor hour Total overhead rate $fill in the blank 18ea28fc700400b_2 per direct labor hour
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
-
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 $222,000 Gas 57,000 Indirect labor 176,000 Supervision 77,000 Depreciation on equipment54,000 Depreciation on the buliding 41,000 Rental of special equipment 10,000 Electricity (for lighting, heating, and air conditioning) 28,100 Telephone 4,800 Landscaping service 2,000 Other overhead 55,000 In the coming year, Johnston expects to powder coat 140,000 units. Each unit takes 1.4 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 1fd96efd9febfd2_1 Variable overhead rate $fill in the blank 1fd96efd9febfd2_2 per direct labor hour Total fixed overhead $fill in the blank 1fd96efd9febfd2_3 Question Content Area
Johnston CompanyOverhead BudgetFor the Coming Year2. 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.
Budgeted direct labor hours fill in the blank 041ea006e06cfff_1 Variable overhead rate $fill in the blank 041ea006e06cfff_2 Budgeted variable overhead $fill in the blank 041ea006e06cfff_3 Budgeted fixed overhead fill in the blank 041ea006e06cfff_4 Total budgeted overhead $fill in the blank 041ea006e06cfff_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 0469cb07707c051_1 per direct labor hour Total overhead rate $fill in the blank 0469cb07707c051_2 per direct labor hour Question Content Area
3. What if Johnston had expected to make 138,000 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 7da05506a03ff91_1Question Content Area
Johnston CompanyNew Overhead BudgetFor the Coming YearPrepare a new overhead budget. If required, round your answers to the nearest cent.
Budgeted direct labor hours fill in the blank e3deb6fcffec019_1 Variable overhead rate $fill in the blank e3deb6fcffec019_2 Budgeted variable overhead $fill in the blank e3deb6fcffec019_3 Budgeted fixed overhead fill in the blank e3deb6fcffec019_4 Total budgeted overhead $fill in the blank e3deb6fcffec019_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 18ea28fc700400b_1 per direct labor hour Total overhead rate $fill in the blank 18ea28fc700400b_2 per direct labor hour
Step by step
Solved in 4 steps
