Answered step by step
Verified Expert Solution
Question
1 Approved Answer
need help with these budgets MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound
need help with these budgets
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 07 direct labor hour at a rate of $12 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $16,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 2760 pounds of direct materials in Inventory. The company's production budget reports the following Production Budget Units to produce September 4,660 October 6.600 November 6,400 (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 Required 1 Required 2. Required 3 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 Cost of direct materials purchases 0 0 0 0 $ 0 $ 0 Required 2 > Required 1 Required 2 Required 3 Prepare direct labor budgets for September and October. (Round "DL h MCO Leather Direct Labor Budget September October Units to produce Direct labor hours required per unit Direct labor hours needed 0 0 Direct labor cost per hour Cost of direct labor $ 0 $ 0 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started