January

10,000

February

17,000

March

13,000

April

18,500

May

22,100

June

24,300

July

26,200

Babcock's most popular cabinet is a small cherry wood cabinet typically used in bathrooms. Each completed unit requires 3.5 hours of direct labor, and the skilled labor costs an average of $25 per hour. The company applies overhead at the rate of $3 per direct labor hour.

A. Create a direct labor budget for January through June.

B. Create a manufacturing overhead budget for the same period.