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how do I do this? MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound

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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0."! direct labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted xed 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 direct materials requirement. At the end of August the company had 3,680 pounds of direct materials in inventory. The company's production budget reports the following. Production. Budget: September October November Units to produce 5,400 6,400 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. epare-{Eect materials midgets for Septenbe; and October. Units to produce Materials required per unit {pounds} Materials needed for production {pounds} Add: Desired ending materials inventory {pounds} Total materials required {pounds} Less: Beginning materials inilientort}.r {pounds} Materials to purchase {pounds} Materials cost per pound l(lost of direct materials purchases

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