E8-22 (Algo) Preparing the Direct Labor and Manufacturing Overhead Budgets [LO 8-3d, e) Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 460, 440, 512, 472, and 540 respectively. Budgeted production in units for January, February, and March were 455, 458, and 502 respectively. Each unit requires 3 direct labor hours and Galactic's hourly labor rate is $23 per hour. The company's variable overhead is $12.00 per unit produced and its fixed overhead is $6,300 per month. Required: 1. Determine Galactic's direct labor budget for the first quarter. 2. Determine Galactic's manufacturing overhead budget for the first quarter