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EXERCISE 7-15 Direct Labor and Manufacturing Overhead Budgets (LO5, LO6) The production department of Harveton Corporation has submitted the following forecast of units to produced by quarter for the upcoming fiscal year. 2nd Quarter 15,000 3rd Quarter 4,000 4th Quarter 5,000 Ist Quarter Units to be produced .16,000 Each unit requires 0.80 direct labor-hours and direct labor-hour workers are paid $11.50 per hour. In addition, the variable manufacturing overhead rate is $2.50 per direct labor-hour. The fixed manu- facturing overhead is $90,000 per quarter. The only noncash element of manufacturing overhead is depre ciation, which is $34,000 per quarter Required: I. Prepare the company's direct labor budget for the upcoming fiscal year, assuming that the direct la- bor workforce is adjusted each quarter to match the number of hours required to produce the fore- casted number of units produced. 2. Prepare the company's manufacturing overhead budget