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 $223,000 Gas 50,000 Indirect labor 179,000 Supervision 73,000 Depreciation on equipment 51,000 Depreciation on the buliding 40,000 Rental of special equipment 10,000 Electricity (for lighting, heating, and air conditioning) 28,400 Telephone 4,000 Landscaping service 1,700 Other overhead 52,000 In the coming year, Johnston expects to powder coat 170,000 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. 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 b1a12aff2024f98_1 Variable overhead rate $fill in the blank b1a12aff2024f98_2 per direct labor hour Total fixed overhead $fill in the blank b1a12aff2024f98_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 c63903072f85fc2_1 Variable overhead rate $fill in the blank c63903072f85fc2_2 Budgeted variable overhead $fill in the blank c63903072f85fc2_3 Budgeted fixed overhead fill in the blank c63903072f85fc2_4 Total budgeted overhead $fill in the blank c63903072f85fc2_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 bd4145f90fd5062_1 per direct labor hour Total overhead rate $fill in the blank bd4145f90fd5062_2 per direct labor hour Question Content Area 3. What if Johnston had expected to make 168,000 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 9c2dccf7304106a_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 f2381609cff5fe5_1 Variable overhead rate $fill in the blank f2381609cff5fe5_2 Budgeted variable overhead $fill in the blank f2381609cff5fe5_3 Budgeted fixed overhead fill in the blank f2381609cff5fe5_4 Total budgeted overhead $fill in the blank f2381609cff5fe5_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 c4c81203405a027_1 per direct labor hour Total overhead rate $fill in the blank c4c81203405a027_2 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 $223,000 Gas 50,000 Indirect labor 179,000 Supervision 73,000 Depreciation on equipment 51,000 Depreciation on the buliding 40,000 Rental of special equipment 10,000 Electricity (for lighting, heating, and air conditioning) 28,400 Telephone 4,000 Landscaping service 1,700 Other overhead 52,000 In the coming year, Johnston expects to powder coat 170,000 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. 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 b1a12aff2024f98_1 Variable overhead rate $fill in the blank b1a12aff2024f98_2 per direct labor hour Total fixed overhead $fill in the blank b1a12aff2024f98_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 c63903072f85fc2_1 Variable overhead rate $fill in the blank c63903072f85fc2_2 Budgeted variable overhead $fill in the blank c63903072f85fc2_3 Budgeted fixed overhead fill in the blank c63903072f85fc2_4 Total budgeted overhead $fill in the blank c63903072f85fc2_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 bd4145f90fd5062_1 per direct labor hour Total overhead rate $fill in the blank bd4145f90fd5062_2 per direct labor hour Question Content Area 3. What if Johnston had expected to make 168,000 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 9c2dccf7304106a_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 f2381609cff5fe5_1 Variable overhead rate $fill in the blank f2381609cff5fe5_2 Budgeted variable overhead $fill in the blank f2381609cff5fe5_3 Budgeted fixed overhead fill in the blank f2381609cff5fe5_4 Total budgeted overhead $fill in the blank f2381609cff5fe5_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 c4c81203405a027_1 per direct labor hour Total overhead rate $fill in the blank c4c81203405a027_2 per direct labor hour

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 5CE: Johnston Company cleans and applies powder coat paint to metal items on a job-order basis. Johnston...

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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 b1a12aff2024f98_1
Variable overhead rate	$fill in the blank b1a12aff2024f98_2	per direct labor hour
Total fixed overhead	$fill in the blank b1a12aff2024f98_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 c63903072f85fc2_1
Variable overhead rate	$fill in the blank c63903072f85fc2_2
Budgeted variable overhead	$fill in the blank c63903072f85fc2_3
Budgeted fixed overhead	fill in the blank c63903072f85fc2_4
Total budgeted overhead	$fill in the blank c63903072f85fc2_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 bd4145f90fd5062_1 per direct labor hour
Total overhead rate	$fill in the blank bd4145f90fd5062_2 per direct labor hour

Question Content Area

3. What if Johnston had expected to make 168,000 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 9c2dccf7304106a_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 f2381609cff5fe5_1
Variable overhead rate	$fill in the blank f2381609cff5fe5_2
Budgeted variable overhead	$fill in the blank f2381609cff5fe5_3
Budgeted fixed overhead	fill in the blank f2381609cff5fe5_4
Total budgeted overhead	$fill in the blank f2381609cff5fe5_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 c4c81203405a027_1 per direct labor hour
Total overhead rate	$fill in the blank c4c81203405a027_2 per direct labor hour

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Supplies	$223,000
Gas	50,000
Indirect labor	179,000
Supervision	73,000
Depreciation on equipment	51,000
Depreciation on the buliding	40,000
Rental of special equipment	10,000
Electricity (for lighting, heating, and air conditioning)	28,400
Telephone	4,000
Landscaping service	1,700
Other overhead	52,000