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 $$13$ per hour. Variable overhead is budgeted at a rate of $$3$ per direct labor hour. Budgeted fixed overhead is

$$17,000$ 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 $3,520$ pounds of direct materials in inventory. The company's

production budget reports the following.

Production Budget September October November

Units $to$ produce $4,400,6,500,6,600$

$(1)$ 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 $1$

Required $2$

References

Prepare direct materials budgets for September and October.