Exercise 7-13 (Algo) Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Company budgets production of 2,470 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor Variable overhead Fixed overhead Each finished unit requires 5 direct labor hours, at a cost of $8 per hour. Budgeted 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. Units to produce Direct labor hours needed Cost of direct labor ADDISON COMPANY Direct Labor Budget Second Quarter 2,470 units