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Exercise 20-15 [Algo] Manufactu ring: Direct materials. direct labor, and overhead budgets L0 P1 MCO Leather manufactures leather purses. Each purse requires 2 pounds ofdirect materials at a cost of $4 per pound and 0.? direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $16,000 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 2,700 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,569 5,986 5,960 {11 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 lis question by entering your answers in lite tabs below. Required 1 Required 2 Required 3 Prepare direct materials budgets for September and October. Units to produce 4,500 aterials required per unit {pounds} Materials needed for production (pounds) 9,000 13,8130 Add: Desired ending materials inventory.I Total materials required (pounds) ess: Beginning materials inventory Matenals to purchase {pounds} aterials cost per pound Cost of direct materials purchases Required 2 > Exercise 20-15 [Algoi Manufacturing: Direct materials. direct labor, and overhead budgets L0 P1 MCO Leather manufactures leather purses. Each purse requires 2 pounds ofdirect materials at a cost of $4 per pound and 0.? direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $16,00U per month. The com pany'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.r had 2,?00 pounds ofdirect materials in inventory. The company's production budget reports the following. Production Budget 5eptember October November Units to produce 4,538 6,986 5,969 {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 2 Required 3 Prepare direct labor budgets for September and October. [Round "DL hours required per unit" answers to one decimal place.} Units to produce Direct labor hours needed Cost of direct labor Exercise 20-15 [Algo] Manufacturing: Direct materials, direct labor, and overhead budgets L0 P1 MCD 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 $19 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $16,000 per month. The com pany's policy is to end each month with direct materials inventoryl equal to 30% of the next month's direct materials requirement. At the end of August the company.' had 2,?00 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,569 6,986 5,969 {11 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 lDctober. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare factor)r overhead budgets for September and October. Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead