. MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.7 direct . . . \"x: labor hour at a rate of $13 per hour. Variable overhead is budgeted at a rate of $2. per direct labor hour. Budgeted xed overhead is , I' $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month a direct materials requirement. At the end of August the company had 2,880 pounds of direct materials in inventory. The company's _ _ production budgetreports the following. - ' ' ' a\" . l: '5 Units tp produce 4,899 7.199 5,769 - (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