2 Direct labor budet ABC Company plans to all within a limited size range identical. The labor rate for machine operators is y plans to produce a number of plastic pails during the budget period. The pails are med sine range, so the amount of processing labor related to each one is nearly he labor routing for each pailis 0.1 hours per pail for the muchine operator. The labor the operators is 525 per direct labor hour. Production for each quarter is as follows: Quarter ! Quarter 2 Quarter 3 Quarter 4 Product A (units) 6,500 7,000 5,800 9,300 Required: Prepare a direct labor budget for the four quarters and the year. Units to be produced Direct labor hours per unit Total hours Direct labor rate Direct labor cost 3. Manufacturing overhead budget The following is the direct labor budget for XYZ Co. 2 Quarter Units to be produced 4 1,950 1,600 1,270 2,900 XYZ Co management estimated that the time required to manufacture one unit of finished goods is .25 direct labor hours. Variable overhead is based on direct labor hours at a rate of $7 per direct labor hour. Fixed overhead is $3,650 per quarter. Required : Prepare a manufacturing overhead budget for the four quarters and the year. Units to be produced Direct labor hours per unit Total hours Variable overhead rate Variable overhead Fixed Overhead Total Overhead