Product Input Expenses Direct Materials Each sweater requires 4 yards of wool. The cost per yard and other materials used is $3.50. Lexie's desires to have materials on hand at the end of each month equal to 7% of the following month's production needs. On September 30, the company had 8,265.60 yards of wool on hand. The company pays 85% of the month's material purchases in the month of purchase and delays the payment for the other 15% of the month's material purchases until the month following the purchase. Direct Labor The process to make each sweater requires 2 workers to contribute .5 hours of labor time. The workers are currently being paid $15.00/hour. Wages are paid in the month incurred. Manufacturing Overhead Variable manufacturing overhead is $11.75 per sweater. Fixed manufacturing overhead is $30,200 per month including $10,250 in depreciation that is not a current cash outflow. All cash disbursements for manufacturing overhead are paid in the month incurred. See below for changes to fixed overhead after October. Product Input Expenses Direct Materials Ending RM Inventory, September 30, 2020 Yards of Wool Required per Sweater Raw Materials Cost per Yard of Wool Ending RM Inventory Requirement yards yards per sweater per yard of next months sweater production needs Wool Purchases Paid for in the Month of Purchase Wool Purchases Paid for in the Month following the Purchase Direct Labor Number of Workers Required for the Making of Each Sweater Labor Hours Required per Worker per Unit of FG (Sweater) Labor Cost per Hour workers hours per hour Manufacturing Overhead Variable Manufacturing Overhead Fixed Manufacturing Overhead Noncash Fixed Manufacturing Overhead (included in above) per sweater per month (Oct.) per month (Oct.) per month (Nov. & beyond) per month (Nov. & beyond)