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MCO Leather Goods manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $12 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $16,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 3,880 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to be produced September 4,900 October 6,600 November 6,600 (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. Prepare direct materials budgets for September and October MCO LEATHER GOODS Direct Materials Budget For the Months of September and October September October Budgeted production (units) Materials requirements per unit (Ibs.) Materials needed for production (lbs.) Budgeted ending inventory (Ibs.) Total materials requirements (lbs.) Budgeted beginning inventory (lbs.) Materials to be purchased (lbs.) Direct material cost per lb Total budgeted direct materials Prepare direct labor budgets for Septemberand october Rod Dhguid er unitanswers to one deimal pace.).. MCO LEATHER GOODS Direct Labor Budget For the Months of September and October September October Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour Total budgeted direct labor Prepare factory overhead budgets for September and October MCO LEATHER GOODS Factory Overhead Budget For the Months of September and October September October Total direct labor hours needed VOH rate per DL hour Budgeted variable overhead Budgeted fixed overhead Total budgeted factory overhead0 S 0