Ketton Ltd is in the process of preparing direct labour and factory overhead budgets for the year ending 30 June 2020. Relevant data are set out below.

Required

(a) Prepare the direct labour budget by quarter for the year ending 30 June 2020.

(b) Prepare the factory overhead budget by quarter for the year ended 30 June 2020.

Transcribed Image Text:

Production: 21000, 41 000, 41 500, 51 000 units per quarter Direct labour: Hourly rate is $18 per hour. Each unit requires 2.5 hours of labour. Factory overhead: Fixed overhead costs per quarter - Salaries, $71 500 Depreciation, $31000 Rent, $60000 Variable overhead - Indirect materials, $3.50 per direct labour hour Indirect labour, $2.60 per direct labour hour Other, 30c per direct labour hour