Ch $20$: Assessment i

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$5$

$16\mathrm{.}66$

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$01$:$25$:$23$

$01$:$25$:$23$

MCO Leather manufactures leather purses. Each purse requires $2$ pounds of direct materials at a cost of $$5$ per pound and $0\mathrm{.}7$ direct labor hour at a rate of $$17$ per hour. Variable overhead is budgeted at a rate of $$3$ per direct labor hour. Budgeted fixed overhead is $$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 direct materials requirement. At the end of August the company had $2,640$ pounds of direct materials in inventory. The company's production budget reports the following.

$\backslash$table$[[$Production Budget,September,October,November$],[$Units to produce,$4,400,6,900,6,100]]$

$\backslash$table$[[$Units to produce $,4,400,6,900,6,100]]$

$(1)$ 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.

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Required $3$

Prepare direct materials budgets for September and October.

$\backslash$table$[[$MCO Leather$],[$Direct Materials Budget$],[,$September,October$],[$Units to produce$],[,,],[$Materials needed for production $($pounds$)],[$Total materials required $($pounds$)],[,,],[$Materials to purchase $($pounds$)],[,,],[$Cost of direct materials purchases,,$]]$

Required $1$

Required $2$

Required $2$

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