ch 20 Q 2

Each unit requires 4 pounds of direct materials, which cost $7 per pound, The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requitement. As of June 30 , the company has 5,280 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July. QS 20-14 Manufacturing: Direct labor budget LO P1 Each unit requires 4 hours of direct labor at a rate of $18 per hour. Prepare a direct labor budget for July. QS 20-15 Manufacturing: Factory overhead budget LO P1 Each unit requires 4 hours of direct labor at a rate of $18 per hour. Variable factory overhead is budgeted to be 60% of direct labor cost, and fixed factory overhead is $171,000 per month. Prepare a factory overhead budget for August