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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $ 4 per pound and 0 . 8

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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.8 direct labor hour at a rate of $16 per hour. Varlable overhead is budgeted at a rate of $2 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 40% of the next month's direct materials requirement. At the end of August the company had 3,680 pounds of direct materials in inventory. The company's production budget reports the following.
\table[[Production Budget,September,October,November],[Units to produce,4,600,6,200,5,800]]
(1) Prepare direct materlals budgets for September and October.
(2) Prepare direct labor budgets for September and October.
(3) Prepare factory overhead budgets for September and October.
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