Exercise $20-7$ Manufacturing: Direct labor and factory overhead budgets LO P$1$

Addison Co$.$ budgets production of $2,460$ units during the second quarter. Other information is as follows:

Direct labor Each finished unit requires $4$ direct labor hours, at a cost of $$10$ per hour.

Variable overhead Applied 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.