Leather manufactures leather purses. Each purse requires 2 pounds of direct rials at a cost of $4 per pound and 0.8 direct labor hour at a rate of $16 per hour. ple overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed ead is $10,000 per month. The company's policy is to end each month with direct ials inventory equal to 40% of the next month's direct materials requirement. At the f August the company had 3,680 pounds of direct materials in inventory. The any's production budget reports the following. iction Budget to produce red: September October 4,600 6,200 November 5,800 epare direct materials budgets for September and October. cells A2 to H11 from the given information to complete this question.) MCO Leather Direct Materials Budget September October to produce 4,600' rials required per unit (pounds) 2 6,200 2 rials needed for production (pounds) 9,200 12,400 Desired ending materials inventory 4,960 materials required (pounds) 14,160 12,400 Beginning materials inventory rials to purchase (pounds) 3,680 10,480 12,400 rials cost per pound $4.00 $4.00 eted direct materials purchases $41,920 $49,600 DM per unit (pounds) DM Cost per DLHs per unit Direct Labor rate pound per hour 2 $4 0.80 $16 VOH rate per DLH Fixed Overhead Direct Materials requirement August ending inventory $2 $10,000 40% 3,680