MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $4 per pound and 0.7 direct labor hours at a rate of $13 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's materials requirement. At the end of August the company had 3,580 pounds of direct materials in inventory. The company's production budget reports the following.

Production Budget: Units to be produced

September-5100

October- 6700

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.