Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,400 units during the second quarter. Other information is as follows: Direct labor Variable overhead Fixed overhead Each finished unit requires 4 direct labor hours, at a cost of $9 per hour. Applied at the rate of $11 per direct labor hour. Budgeted at $450,000 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 ADDISON CO. Direct Labor Budget Second Quarter Units to be produced 2,400 units Total labor hours needed Budgeted direct labor cost ADDISON CO. Factory Overhead Budget Second Quarter Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead