Exercise 20-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,750 units during the second quarter. Other information is as follows: Direct labor Variable overhead Fixed overhead Each finished unit requires 3 direct labor hours, at a cost of $7 per hour. Applied at the rate of $9 per direct labor hour. Budgeted at $540,000 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 2.750 units Total labor hours needed Budgeted direct labor cost