Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Lesther Goods manufactures les her purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $20 per hout. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Pred manufacturing overhead is $11,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's materiais requirement. At the end of August the company had 4 690 pounds of direct materials in inventory. The company's production budget report the following Ots to be produced ( Prepare direct matarsis budgets for September and October (2) Prepare direct labor budget for September and October 39 Prepare factory overhead budget for September and October Complete this question by entering your answers in the tabs below. Required qurd Required Precare direct materials budgets for September and October MCO LEATHER GOODS Direct Materials Budget For the Months of September and October September October Buod production 4300 0 .000 mended for production : Budgeted ending inventory s.) rements (es) invertory ( Wars to be purchas ) 2880 17.250 4680 12800 20700 140 24340 2380 21980 Total budged direct masaras S 37.500 S 65.380 Required 2 >