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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour

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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour at a rate of $11 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $10,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 2,580 pounds of direct materials in inventory. The company's production budget reports the following Production Budget Units to produce September October 4,300 6.500 November 6.000 (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 Required 2 Required 3 Prepare direct materials budgets for September and October MCO Leather Direct Materials Budget September October Units to produce Materials needed for production (pounds) Total materials required (pounds) 0 Materials to purchase (pounds) 0 0 Cost of direct materials purchases $ 0 $ 0 Required 2 > Required Required 2 Required 3 Prepare direct labor budgets for September and October. (Round "DL hours required per MCO Leather Direct Labor Budget September October Units to produce Direct labor hours needed 0 0 Cost of direct labor $ 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare factory overhead budgets for September and October MCO Leather Factory Overhead Budget September October Direct labor hours needed Budgeted variable overhead $ 0 $ 0 Budgeted total factory overhead $ 0 $ 0

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