Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,470 units during the second quarter. Other information is as follows: Direct labor Variable overhead Fixed overhead Each finished unit requires 5 direct labor hours, at a cost of $8 per hour. Applied at the rate of $10 per direct labor hour. Budgeted at $520,000 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 Second Quarter Units to be produced 2,470 units Total labor hours needed Budgeted direct labor cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a factory overhead budget. ADDISON CO. Factory Overhead Budget Second Quarter Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead