Exercise 20-16 Manufacturingr Direct materials, direct labor, and overhead budgets P1 Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direcr materials at a cost of $3 per pound and 0.5 direct labor bour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed owerhead is $4,000 per month. The company's poliey is to maintain direct materials inventory equal to 20% of the next month's direct materials requirement. At the end of February the company had 5,280 pounds of direct materials in inventory. The company's production budget reports the following. Prepare budgets for March and April for (1) direct materials, (2) direct labor, and (3) factory overhead