Question

Addison Co. budgets production of 2.790 units during the second quarter. Other information is as follows: Each finished unit requires s direct labor hours, at a cost of $10 per hour. Direct labor Variable overhead Applied at the rate of $12 per direct labor hour. Budgeted at $580,000 per quarter Fixed overhead oed 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget. Dook Hint Complete this question by entering your answers in the tabs below. Ack Print Required 1 Required 21 eterences Prepare a factory overhead budget ADDISON CO Factory Overhead Budget Second Quarter Total labor hours needed Budgeted varable overhead Budgeted fxed overhead Prev 1 of 1 Next pe here to search ort sc 44 $ 4 % 5 & 3 6 7 8 O P E T U D F H J K L O N CR

Answer 1

Direct Labor Budget :- Particulars Units to be produced (1) Direct labor hours per unit (1) Total labor hours needed (1911)= iii Cost per direct labor hour (iv) Estimated direct labor cost (iii*iv) 2,790 5.00 13,950 10.00 139,500 Factory Overhead Budget :: Particulars Total labor hours needed (1) Variable overhead per direct labor hour (2) Budgeted variable overhead (12) = 3 Budgeted fixed overhead (4) Budgeted total overhead (3+4) 13,950 12.00 167,400 580,000 747,400