Ch 07 Ex 7-7 1 Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,830 units during the second quarter. Other information is as follows: 10 points Direct labor Each finished unit requires 5 direct labor hours, at a cost of $7 per hour. Applied at the rate of $9 per direct labor hour. Budgeted at $620, 000 per quarter. Skipped Variable overhead Fixed overhead 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. ook Hint Complete this question by entering your answers in the tabs below. Ask Required 1 Required 2 Prepare a direct labor budget. Print ADDISON CO. Direct Labor Budget References Second Quarter Units to be produced 2,830 units Total labor hours needed Budgeted direct labor cost Required 1 Required 2 Prepare a factory overhead budget. ADDISON CO. Factory Overhead Budget Second Quarter Total labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total overhead Required 1