Phelps Company manufactures one product that requires 3 hours of machining direct labor and 2 hours of assembly direct labor. The standard labor rate is $18.00 per direct labor hour in the Machining Department and $15.00 per direct labor hour in the Assembly Department. The product has forecasted sales of 2,000 units in May. The estimated finished goods inventory at May 1 is 250 units and the desired ending inventory at May 31 is 450 units.

(1) Prepare a production budget for the month of May. (2) Prepare a direct labor budget for the month of May.