MCO Leather manufactures leather purses. Each purse requires $2$ pounds of direct

materials at a cost of $$4$ per pound and $0\mathrm{.}7$ direct labor hour at a rate of $$20$ per hour.

Variable overhead is budgeted at a rate of $$3$ per direct labor hour. Budgeted fixed

overhead is $$13,000$ 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 $3,440$ pounds of direct materials in inventory. The

company's production budget reports the following.

$(1)$ 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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Prepare direct materials budgets for September and October.