Addison co. budgets production of 2,400 units during the second quarter. other information is as follows:
direct labor: each finished unit requires 4 direct labor hours, at a cost of $20 per hour.
variable overhead: applied at the rate of $11 per direct labor hour.
fixed overhead: budgeted at $450,000 per quarter.
1. prepare a direct labor budget.
2. prepare a factory overhead budget.