Exercise 07-7 Manufacturing: Direct labor and factory overhead budgets LO P1 Addison Co. budgets production of 2,850 units during the second quarter. Other information is as follows: Direct labor Each finished unit requires 6 direct labor hours, at a cost of $9 per hour. Variable overhead Applied at the rate of $11 per direct labor hour. Fixed overhead Budgeted at $640,000 per quarter. 1. Prepare a direct labor budget. 2. Prepare a factory overhead budget.

See below

Explanation:

1. Total Direct labor

Addison Co.

Direct labor budget for second quarter

Budgeted production units 2,850

Direct labor hour per one unit 6

Total direct labor hours needed 17,100

Cost per one direct labor $9

Total direct labor $153,900

2. Total factory overhead budget

Addison Co. Factory overhead for second quarter

Total direct labor hours needed 17,100

Variable rate per direct labor hour $11

Budgeted variable overhead $188,100

Budgeted fixed overhead $640,000

Total factory overhead $828,100

convection currents in magma drive plate tectonics. the answer is true.

there was no passage listed but using the process of elimination i'd say it was d. the high economy would do the opposite. i don't see how low prices would affect it. high unemployment is possible but i feel d is the better answer.