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Ramos Co. provides the following sales forecast and production budget for the next four months:

	April		May		June		July
Sales (units)	500		580		530		600
Budgeted production (units)	442		570		544		540

The company plans for finished goods inventory of 120 units at the end of June. In addition, each finished unit requires 5 pounds of direct materials and the company wants to end each month with direct materials inventory equal to 30% of next months production needs. Beginning direct materials inventory for April was 663 pounds. Direct materials cost $2 per pound. Each finished unit requires 0.50 hours of direct labor at the rate of $16 per hour. The company budgets variable overhead at the rate of $20 per direct labor hour and budgets fixed overhead of $8,000 per month.

1. Prepare a direct labor budget. 2. Prepare a factory overhead budget for April, May, and June.

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a direct labor budget. (Enter your direct labor hours (hrs.) per unit in two decimal places.) RAMOS cO Direct Labor Budget For April, May, and June April May June Budgeted production (units) 442 570 544 units Total labor hours needed Budgeted direct labor cost Required 1 Required 2