Requirement Prepare the Direct Labor Budget for Mitchell Inc.. The product's manufacturing cost is $121 per unit, including per unit costs of $52 for materials (4 lbs. at $13 per lb.), $44 for direct labor (2 hours x $22 direct labor rate per hour), $17 for variable overhead, and $8 for fixed overhead. hii nc. Direct Labor Budget Forthe year ended December 31, 2018 First Qtr. Second Qtr. Third Total direct labor hours needed Total budgeted direct labor cost (dollars) Fourth Qtr.