Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct tabor hours at a rate of $11 per hour Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 4,580 pounds of direct materials in inventory The company's production budget reports the following Production budet September November Units to be produced October 5,100 (1) Prepare direct materials budgets for September and October (2) Prepare direct tabor budgets for September and October (3) Prepare factory overhead budgets for September and October Required 1 Required 2 Required 3 2 Prepare direct materials budgets for September and October. oints 01:47:04 MCO Leather Direct Materials Budget For the Months of September and October September October Budgeted production (units) 5,100 6.900 Materials requirements per unit (lbs) 3 Materials needed for production (lbs) 15,300 20,700 Budgeted ending inventory (lbs) Total materials requirements (lbs) 15,300 20.700 Budgeted beginning inventory (lbs) Materials to be purchased (lbs) 15,300 20,700 Direct material cost perib Total budgeted direct materials $ 0 $ 0 eBook AL Required Required 2 > 2 Complete this question by entering your answers in the tabs below. Required: Required 2 Required 3 6 ponts 01:46:40 000 Prepare direct labor budgets for September and October (Round "Du bours recured per unit answers to one decimal place) MCO Leather Direct Labor Budget For the Months of September and October September October Budgeted production (unts) DL hours required perunt Total direct labor hours nodod Direct laborato per hour Total budgeted direct sabor 5 OS 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 $ 0 $ 0 0 GA