Each unit requires $4$ hours of direct labor at a rate of $$18$ per hour. The company applies variable overhead at the rate of $$14$ per direct labor hour. Budgeted fixed factory overhead is $$186,000$ per month. Prepare a factory overhead budget for August.

$\backslash$table$[[$MIAMI SOLAR$],[$Factory Overhead Budget,$],[$Direct labor hours needed,August$],[,],[$Budgeted variable overhead,$],[,],[$Budgeted total factory overhead,$

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Required Information

Use the following information for the Quick Study below. $($Algo$)$

Mlam Solar manufactures solar panels for industrial use. The company budgets production of $5,600$ units $($solar panels$)$ in July and $4,700$ units in August.

QS $20-9($Algo$)$ Manufacturing: Direct materials budget LO P$1$

Each unit requires $2$ 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 requirement. As of June $30,$ the company has $3,360$ pounds of direct materials in inventory. Prepare the direct materials budget for July.

$\backslash$table$[[$MIAMI SOLAR$],[$Direct Materials Budget,$],[$Units to produce,July$],[,5,600],[$Materials needed for production $($pounds$),],[,],[$Total materials required $($pounds$),],[,],[$Materials to purchase $($pounds$),],[,],[$Cost of direct materials purchases,$]]$