MCO Leather manufactures purses. Each purse requires 3 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hours at a rate of $14 per hour. Variable manufacturing overhead is charged at a rate of $1 per direct labor hour. Fixed manufacturing overhead is $16,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next months materials requirement. At the end of august the company had 4,180 pounds of direct materials in inventory. The company's production budget reports the following Units to be produced September 5,600 October 7,000 November 6,300

Budgeted production (units) Materials requirements per unit (lbs) - 1305; Materials needed for production (lbs.) __ gig; Budgeted ending inventory (Ibs.) F\" i__. w-\" Total materials requirements (lbs) Print : Budgeted beginning inventory Obs.) Materiais to be purchased (lbs.) Direct material cost per Ib.' Total budgeted direct malerials q ea 01 \"I o