Addison Co. budgets production of 2,440 units during the second quarter. Other information is as follows:

Direct labor		Each finished unit requires 3 direct labor hours, at a cost of $9 per hour.
Variable overhead		Applied at the rate of $11 per direct labor hour.
Fixed overhead		Budgeted at $490,000 per quarter.

1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.

ADDISON CO. Direct Labor Budget Second Quarter Units to be produced 2,440 units Total labor hours needed Budgeted direct labor cost ADDISON CO. Factory Overhead Budget Second Quarter Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead