Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 07 direct labor hours at a rate of $14 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 3,180 pounds of direct materials in Inventory. The company's production budget reports the following Production todext October November Units to be produced 6, 300 3,400 6,200 (1) Prepare direct materials budgets for September and October (2) Prepare direct lobor 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 Regards Prepare direct materials budots for September and October MCO Lather 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) Materials requirements per unit (bis) Materials needed for production (lbs) O 0 Budgeted ending inventory Total materials requirements (lbs) 0 0 Budgeted beginning inventory (lbs) Materials to be purchased (s) O 0 Drect material cost per Total budgeted direct materials $ 05 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct labor budgets for September and October (Round. "OL 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) DL hours required per unit Total direct labor hours needed Direct laborate per lo Total budgeted dreco $ OS 0 0 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 0 Budgeted fixed overhead Total budgeted factory overhead $ 0 $ 0