Prince Corporation requires 3.5 hours of direct labor to complete one unit. Direct labor cost is

$4.45 per hour. Fixed indirect labor costs amount to $4,500 per week. Supervision accounts for 55% of this cost; the remaining is allocated to maintenance. The variable portion of indirect labor is applied at $.50 per direct labor hour. Supervision accounts for 55% of this cost; the remaining is allocated to maintenance.

Required:

Assuming 2,750 units are produced each week, prepare a direct labor budget, and compute the fixed and variable amounts of factory overhead for indirect labor for the year 19X6. lo4