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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

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 $13 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $12,000 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 2,880 pounds of direct materials in inventory. The company's production budget reports the following.
\table[[Production Budget,September,October,November],[Units fo produce,4,800,6,400,6,200]]
(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.
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