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Prepare a direct labor budget

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Question - Addison Co. budgets production of 2,860 units during the second quarter. Other information is as follows:

Direct labor - Each finished unit requires 5 direct labor hours, at a cost of $10 per hour.

Variable overhead - Applied at the rate of $12 per direct labor hour.

Fixed overhead - Budgeted at $650,000 per quarter.

1. Prepare a direct labor budget.

2. Prepare a factory overhead budget.

Reference no: EM131595711

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