Company manufactures telephone handsets. Decision made to make a push for labor and overhead cost controls because of increased overseas competition.Data related to labor costs and manufacturing overhead.Production budgets for period ending June 30:January units: 25 000February units: 27 000March units: 32 000April units: 28 500May units: 31 400June units: 34 500Each phone requires 2.5 hours direct labor.Company applies manufacturing overhead to production at the rate of $7 per direct labor hour.(*projected direct labor cost in January: $937 500)A. What is the direct labor budget for January through June. Direct labor averages $15 per hour.B. What is the manufacturing overhead budget for the same period.
