Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $5 per pound and C./ direct labor hours

image text in transcribed
image text in transcribed
image text in transcribed
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $5 per pound and C./ direct labor hours at a rate of $15 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing 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 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. Production Budget September October November Units to be produced 4,800 6,700 6,300 (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 Required 3 Prepare direct materials budgets for September and October MCO Leather Direct Materials Budget For the Months of September and October September October Budgeted production (units) Materials requirements per unit (lbs.) Materials needed for production (lbs) 0 0 Budgeted ending Inventory (lbs) Total materials requirements (lbs) 0 0 Budgeted beginning inventory (lbs) Materials to be purchased (s) 0 0 Direct material cost perib, Total budgeted direct materials $ 0 $ 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare direct labor budgets for September and October (Round "DL hours required per unit" answers to one deci MCO Leather Direct Labor Budget For the Months of September and October September October Budgeted production (units) DL hours required per unit Total direct labor hours needed Direct labor rate per hour Total budgeted direct labor $ $ 0 0 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare factory overhead budgets for September and October MCO Leather Factory Overhead Budget For the Months of September and October September October Total direct labor hours needed VOH rate per DL hour Budgeted variable overhead 0 Budgeted fixed overhead Total budgeted factory overhead $ 0 $ 0 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Internal Auditing

Authors: Manuel E. Peña-Rodríguez

1st Edition

1736742922, 978-1736742921

More Books

Students also viewed these Accounting questions