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Please provide the math to solve the math problems in the blank rectangles MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct
Please provide the math to solve the math problems in the blank rectangles
MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $16 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $14.000 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 2,780 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to be produced September 5,480 October 6,880 November 6,100 (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) 5.400 6.800 Materials requirements per unit 3 3 (lbs) Materials needed for production 10.200 20,400 (lbs.) Budgeted ending inventory (lbs.) Total materials requirements (lbs.) 18.200 20.400 Budgeted beginning inventory 2.780 (lbs.) Materials to be purchased (lbs.) 13.420 20.400 Direct material cost per lb. IS 3 S 3 Total budgeted direct materials S 40.260 $ 61,200 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 s 3$ 3 Budgeted variable overhead 0 0 Budgeted foed overhead IS 14,000 $ 14,000 Total budgeted factory S 14,000 S 14,000 overhead Required 2 Required 3Step by Step Solution
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