Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor 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 4,380 pounds of direct materials in inventory The company's production budget reports the following Production Budget Units to be produced September October November 6,400 4,900 6,500 (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 2Required 3 Prepare direct materials budgets for September and October MCO LEATHER GOODS Direct Materials Budget For the Months of September and October September October Budgeted production (units) Materials requirements per unit (lbs.) Materials needed for production (Ibs.) Budgeted ending inventory (Ibs.) Total materials requirements (Ibs.) Budgeted beginning inventory (Ibs.) Materials to be purchased (Ibs.) Direct material cost per lb Total budgeted direct materials Required 2 >