1 5 manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $10 per hout Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $13,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 4,580 pounds of direct materials in inventory. The company's production budget reports the following Production Budget September October November Units to produce 4,900 6,500 6.700 (1) Prepare direct materials budgets for September and October (2) Prepare direct labor budgets for September and October (3) Prepare factory overhead budgets for September and October points Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October MCO Leather Direct Materials Budget September October Units to produce Materials required per unit (pounds) Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Required 1 Requited 2 Required 3 Prepare direct labor budgets for September and October. (Roun October MCO Leather Direct Labor Budget September Units to produce Direct labor hours required per unit Direct labor hours needed Direct labor cost per hour Cost of direct labor Required 1 Required 2 Required 3 Prepare factory overhead budgets for September and October. October MCO Leather Factory Overhead Budget September Direct labor hours needed Variable overhead rate per direct labor hour Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead