Addison Company budgets production of 2,810 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor. Variable overhead. Fixed overhead Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Budgeted at the rate of $11 per direct labor hour. Budgeted at $600,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Addison Company budgets production of 2,810 units during the second quarter. Information on its direct labor and its variable and fixed overhead is as follows: Direct labor. Variable overhead. Fixed overhead Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Budgeted at the rate of $11 per direct labor hour. Budgeted at $600,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Addison Company budgets production of 2,810 units during the second quarter. Information on its direct labor and its variable and
fixed overhead is as follows:
Direct labor
Variable overhead
Fixed overhead
1. Prepare a direct labor budget.
2. Prepare a factory overhead budget.
Complete this question by entering your answers in the tabs below.
Each finished unit requires 6 direct labor hours, at a cost of $9 per hour.
Budgeted at the rate of $11 per direct labor hour.
Budgeted at $600,000 per quarter.
Required 1 Required 2
Prepare a direct labor budget.
Units to produce
Direct labor hours needed i
Cost of direct labor
ADDISON COMPANY
Direct Labor Budget
Second Quarter
2,810 units
Required 1
Required 2 >
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