Addison Co. budgets production of 2,780 units during the second quarter. Other information is as follows:

Direct labor		Each finished unit requires 6 direct labor hours, at a cost of $7 per hour.
Variable overhead		Applied at the rate of $9 per direct labor hour.
Fixed overhead		Budgeted at $570,000 per quarter.

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