Macchu Company produces stuffed toy animals; one of these is "Andie the Llama." Each Andie takes 0.30 yard of fabric and eight ounces of polyfiberfill. Fabric costs $3.50 per yard and polyfiberfill is $0.05 per ounce. Macchu has budgeted production of Andies for the next four months as follows: Units Quantity Cost October 42,000 Direct Material November 90,000 Fabric 0.3 $ 3.50 December 50,000 Polyfiberfill 8 $ 0.05 January 40,000 Direct Labor 0.25 $ 14.00 Inventory policy requires that sufficient fabric be in ending monthly inventory to satisfy 10 percent of the following month's production needs and sufficient polyfiberfill be in inventory to satisfy 15 percent of the following month's production needs. Inventory of fabric and polyfiberfill at the beginning of October equals exactly the amount needed to satisfy the inventory policy. Safety Stock Following month's needs Fabric 10% Polyfiberfill 15% Each Andie produced requires (on average) 0.25 direct labor hour. The average cost of direct labor is $14 per hour. Submit answers on the worksheet "Excel Assignment 4" Required: 1. Prepare a direct materials purchases budget of fabric for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. Round your answers to the nearest cent, if required. 2. Prepare a direct materials purchases budget of polyfiberfill for the last quarter of the year showing purchases in units and in dollars for each month and for the quarter in total. Round your answers to the nearest cent, if required. 3. Prepare a direct labor budget for the last quarter of the year showing the hours needed and the direct labor cost for each month and for the quarter in total. Round your answers to the nearest Macchu Company Direct Materials Purchases Budget for Fabric For the Fourth Quarter October November December Units produced 42,000 90,000 50,000 * DM per unit (yards) 0.30 0.30 0.30 Production needs 12,600 27,000 15,000 Desired ending inventory (yards) Total needed Less: Beginning inventory Direct materials to be purchased x Cost per yard Total purchase cost Total 182,00 0.30 54,600 Macchu Company Direct Materials Purchases Budget for Polyfiberfill For the Fourth Quarter October November December Units produced 42,000 90.000 50,000 DM per unit (ounces) 8 8 8 Production needs 336,000 720,000 400,000 Desired ending inventory (ounces) Total needed Less: Beginning inventory Direct materials to be purchased x Cost per ounce S 0.05 0.05 0.05 Total purchase cost #VALUE! #VALUE! #VALUE! Total 182,000 8 1,456,000 0.05 Units produced * Direct labor time per unit (hours) Direct labor hours needed * Cost per direct labor hour Total direct labor cost Macchu Company Direct Labor Budget For the Fourth Quarter October November 42,000 90.000 0.25 0.25 10,500 22,500 $ 14.00 $ 14.00 $ 147,000 $ 315,000 December 50,000 0.25 12,500 $ 14.00 $ 175,000 Total 182,000 0.25 45,500 14.00 $ 637,000 onun