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Direct Materials Purchases Budget: Direct Labor Budget Macchu Company produces stuffed toy animals; one of these is Andie the Liama, Each Andie takes 0 .

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Direct Materials Purchases Budget: Direct Labor Budget Macchu Company produces stuffed toy animals; one of these is "Andie the Liama," Each Andie takes 0 . 20 yard of fabric (white with irregular black splotches) and 10 ounces of polyfiberfill. Fabric costs $3.40 per yard and polyfiberfill is $0.05 per ounce. Macchu has budgeted production of Andies for the next four months as foliows: Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 20 percent of the following month's production needs and sufficient polyfiberfill be in inventory to satisfy is percent of the following month's production needs. Inventory of fabric and polyfiberfil at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Each Andle produced requires (on average) 0.10 direct labor hour. The average cont of direct labor is $15 per hour. Required: 1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the nuartar in total. Round your answers to the nearest cent, if required. 2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month a the quarter in total. Round your answers to the nearest cent, if required

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