labor hour at a rate of $$18$ per hour. Variable overhead is budgeted at a rate of $$2$ per direct labor hour. Budgeted fixed overhead is

$$18,000$ per month. The company's policy is to end each month with direct materials inventory equal to $20\%$ of the next month's direct

materials requirement. At the end of August the company had $1,880$ pounds of direct materials in inventory. The company's production

budget reports the following.

$(1)$ 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.

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Prepare direct materials budgets for September and October.