MCO Leather manufactures leather purses. Each purse requires pounds of direct materials at a cost of $ per pound and direct labor hours at a rate of $ per hour. Variable overhead is budgeted at a rate of $ per direct labor hour. Budgeted fixed overhead is $ per month. The companys policy is to end each month with direct materials inventory equal to of the next months direct materials requirement. At the end of August the company had pounds of direct materials in inventory. The companys production budget reports the following. Click on the Direct Materials Budget, Direct Labor Budget and Factory Overhead Budget Tabs below.

Production Budget September October November

Units to produce

Direct materials per unit pounds

Direct materials cost $ per pound

Direct labor hours DLHsper unit DLHs per unit

Direct labor rate $per debt

Budgeted variable overhead $per debt

Budgeted fixed overhead $ per month

Direct materials policy of next month\'s direct materials requirement

August ending materials pounds

Required:

Prepare direct materials budgets for September and October.

MCO Leather

Direct Materials Budget

\"September October

Units to produce

Materials required per unit pounds

Materials needed for production pounds

Add: Desired ending materials inventory

Total materials required pounds

Less: Beginning materials inventory

Materials to purchase pounds

Materials cost per pound

Budgeted direct materials purchases

Prepare direct labor budgets for September and October.

MCO Leather

Direct Labor Budget

September October

Units to produce

Direct labor hours needed

Budgeted direct labor cost

Prepare factory overhead budgets for September and October.

MCO Leather

Factory Overhead Budget

September October

Direct labor hours needed

Budgeted variable overhead

Budgeted total factory overhead