orked in similar environments throughout their careers, and he loves the idea of building something that consumers will enjoy. W thers on his team passed on the chance to build the budget, Jason really enjoys seeing how the pieces fit together like a puzzle. His ask this month: put the three key production budgets together, culminating in a COGS budget for his division. He gathers the ollowing information in order to get to work. - Budgeted production in units for October is 1,700; for November, 1,700; and for December, 2,100. - Every unit requires 4 pounds of direct material. The company desires an ending direct materials inventory of 25% of the following month's production needs. October 1DM Inventory is budgeted to be 70 pounds. Every unit requires 1.30 DL hours. - MOH is allocated based on DL costs, at a budgeted variable rate of $0.25 per dollar of DL cost. - Budgeted monthly Fixed MOH costs are supervisors' salaries of $2,000, depreciation of $1,700 and property taxes and insurance of $800. - There is no budgeted beginning or ending WIP Inventory for October. - October 1FG Inventory is budgeted to be 200 units at an estimated total cost of $6,700 (per management estimate). - Budgeted FG Inventory on October 31 is 180 units. epare the company's MOH budget for October. (Round budgeted variable-MOH rate per DL cost to 2 decimal places, e.g. 15.25