CH Exercise 07-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 07 direct labor hours at a rate of $19 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $15,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's materials requirement. At the end of August the company had 4,080 pounds of direct materials in inventory The company's production budget reports the following. Production Budget Units to be produced 4,600 September October 7,100 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 Complete this question by entering your answers in the tabsloelow. Required 1 Required 2 Required a Prepare direct materials budgets for September and October. Mith ework STVO nep 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 MCO Leather Direct Materials Budget For the Months of September and October September October Budgeted production (units) 4,600 6.200 Materials requirements per unit (lbs) 2 2 Materials needed for production (lbs) 9.200 12.400 Budgeted ending inventory (lbs) 2.840 2.640 Total materials requirements (lbs) 12.040 15.040 Budgeted beginning inventory (lbs) 2.840 Materials to be purchased (lbs) 12,040 12 200 Direct material cost per lb Total budgeted direct materials $ 05 0 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required Required 3 Required 2 Prepare direct labor budgets for September and October, (Round "DL hours required per unit" answers to one decimal place.) MCO Leather 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 $ 0 S 0 0 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare factory overhead budgets for September and October. MCO Leather 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 0 Budgeted fixed overhead Total budgeted factory overhead $ 05 0 0