Addison Company budgets production of 2,850 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 6 direct labor hours, at a cost of $9 per hour. Variable overhead Budgeted at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $640,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.