Addison Company budgets production of 2,460 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows:

Direct labor	Each finished unit requires 4 direct labor hours, at a cost of $10 per hour.
Variable overhead	Budgeted at the rate of $12 per direct labor hour.
Fixed overhead	Budgeted at $510,000 per quarter.

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