MCO Leather Goods manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $16 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $19,000 per month. The companys policy is to end each month with direct materials inventory equal to 40% of the next months materials requirement. At the end of August the company had 3,380 pounds of direct materials in inventory. The companys production budget reports the following.

Production Budget	September		October		November
Units to be produced	5,300		6,700		6,400

(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 1Required 2 E Required3 Prepare direct labor budgets for September and October. (Round "DL hours required per unit" answers to o MCO LEATHER GOODS Direct Labor Budget For the Months of September and October September October Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour Total budgeted direct labor Required 1 Required3 >