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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour at a rate of $13 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $14,000 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 2,700 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September Units to produce 4,500 October 6,800 November 6,800 (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. 3 (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 Required 3 Prepare direct materials budgets for September and October. Units to produce MCO Leather Direct Materials Budget Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases September $ 0 0 0 $ October 0 0 0 (3) Prepare factory overhead budgets for September and October. Complete this question by entering your answers in the tabs below. Required 1 Requires 2 Required 3 Prepare direct labor budgets for September and October. (Round "DL hours required per unit" answers to one decimal place.) MCO Leather Direct Labor Budget Units to produce Direct labor hours needed i Cost of direct labor September October $ 0 0 S 0 0 (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 factory overhead budgets for September and October. Direct labor hours needed Budgeted variable overhead MCO Leather Factory Overhead Budget Budgeted total factory overhead September $ $ 0 $ 0 $ October 0 0