2 Mco leather manufactures leather purses. Fach purse requires 2 pounds of direct 3 materiak at a cost of $4 per pound and 0.8 direct labor hour at a rate of $16 per hout. 4 varable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed 5 onerhead is $10.000 per month. The company's policy is to end each month with direct E materiak imentory equal to 40 of of the neat month's direct materials requirement. At the 7 end of August the company had 3,680 pounds of direct materias in inventory the 6 company's production budget reports the following. \begin{tabular}{|l|c|c|c|} \hline Production budiet & September & October & Nommber \\ \hline Units to produce & 4,600 & 6,200 & 5,000 \\ \hline \end{tabular} Required. (1) Prepare direct materials budgets for September and octobec (Use cells A2 to HII from the given information to complete this question.) Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Budgeted direct materials purchases (2) Prepare direct labor budgets for September and October. (Use cells A2 to H11 from the given information to complete this question.) MCO Leather Direct Labor Budget Units to produce Direct labor hours required per unit Direct labor hours needed 42 Budgeted direct labor cost 43 44 (3) Prepare factory overhead budgets for September and October. 46 (Use cells A2 to H11 from the given information to complete this question.) \begin{tabular}{|c|c|c|} \hline 47 & MCO Leather \\ \hline 48 & Factory Overhead Budget \\ \hline 49 & September October \\ \hline 50 & \\ 51 & Direct labor hours needed \\ 52 & \\ \hline 53 & Budgeted variable overhead \\ \hline 54 & Budgeted fixed overhead \\ 55 & Budgeted total factory overhead \\ \hline \end{tabular}