Answer:
1) Direct Labor Budget April May June July
production 450 580 550 550
* hours per unit 0.60 0.60 0.60 0.60
= hours worked 270 348 330 330
* rate $17 $17 $17 $17
Direct Labor Cost $4,590 $5,916 $5,610 $5,610
2) Factory overhead budget
Variable overhead $5,670 $7,308 $6,930
Fixed overhead $8,100 $8,100 $8,100
Total overhead budget $13,770 $15,408 $15,030
Explanation:
Variable overhead = ( direct labor hour * $21)
April = ( 270 * $21) = 5,670
May = ( 348 * $21) = 7,308
June = ( 330 *$21) = 6,930
