Exercise 22-13 Manufacturing: Direct labor and factory overhead budgets P1 Addison Co. budgets production of 2,400 units during the second quarter. Information on its direct labor and its variable and fixed overhead is shown below. For the second quarter, prepare (1) a direct labor budget and (2) a factory overhead budget. Direct labor. Each finished unit requires 4 direct labor hours at a cost of $20 per hour Variable overhead Fixed overhead Budgeted at the rate of $11 per direct labor hour Budgeted at $450,000 per quarter