ences MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $20,000 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 4,680 pounds of direct materials in inventory The company's production budget reports the following Production Budget Units to be produced September 4,900 October 6,700 November 6,700 (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 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) 4,900 6,700 Materials requirements per unit (lbs) 2 2 Materials needed for production (lbs) 9.900 13,400 Budgeted ending inventory (lbs) Total materials requirements (bs) Budgeted beginning inventory (lbs.) Materials to be purchased (bs) Direct matenal cost cerb 2,680 2,680 12,480) 16.080 3,680 5,280 8,800 10,800 S 3 $ 31 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) 4,900 6,700 Materials requirements per unit (lbs.) 2 2 Materials needed for production (lbs.) 9,800 13,400 Budgeted ending inventory (lbs.) 2,680 2,680 ces Total materials requirements (lbs.) 12,480 16,080 Budgeted beginning inventory (lbs.) 3,680 5,280 Materials to be purchased (lbs.) 8,800 10,800 Direct material cost per lb. $ 3 $ 3 Total budgeted direct materials $ 26,400 $ 32,400 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) 5,500 6,600 DL hours required per unit 0707 Total direct labor hours needed. 3,850 4.620 Direct labor rate per hour S 10 $10 Total budgeted direct labor $ 38,500 $ 46,200) Prepare factory overhead budgets for September and October. MCO Leather Factory Overhead Budget For the Months of September and October September October es Total direct labor hours needed 3,850 4,620 VOH rate per DL hour $ 2 $ 2 Budgeted variable overhead 7,700 9,240 Budgeted fixed overhead $ 10,000 $ 10,000 Total budgeted factory overhead $ 17,700 $ 19,240