#4

Addison Co. budgets production of 2,470 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 5 direct labor hours, at a cost of $8 per hour. Variable overhead Applied at the rate of $10 per direct labor hour. Fixed overhead Budgeted at $520,000 per quarter

1. Prepare a direct labor budget.

ADDISON CO.
Direct Labor Budget
Second Quarter
Units to be produced	2,470	units
Total labor hours needed
Labor dollars

2.

Prepare a factory overhead budget.

ADDISON CO.
Factory Overhead Budget
Second Quarter
Total labor hours needed
Budgeted variable overhead
Budgeted fixed overhead
Budgeted total overhead