Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co budgets production of 2.770 units during the second quarter. Other information is as follows: cost of $9 per hour. Direct labor Variable overhead Fixed overhead Each finished unit requires 4 direct labor hours at Applied at the rate of $11 per direct labor hour. Budgeted at $560,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a direct labor budget. ADDISON CO. Direct Labor Budget Required 1 Required 2 Prepare a direct labor budget. ADDISON CO. Direct Labor Budget Second Quarter Units to be produced 2,770 units Total labor hours needed Budgeted direct labor cost