! Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 5,000 units (solar panels) in July and 5,100 units in August. Each unit requires 3 pounds of direct materials, which cost $7 per pound. The company's policy is to maintain direct materials inventory equal to 30% of the next month's direct materials requirement. As of June 30, the company has 4,500 pounds of direct materials in inventory. Prepare the direct materials budget for July. MIAMI SOLAR Direct Materials Budget 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 (pounds) Materials to purchase (pounds) Cost of direct materials purchases July 5,000 3 15,000 Each unit requires 5 hours of direct labor at a rate of $18 per hour. Prepare a direct labor budget for July. MIAMI SOLAR Direct Labor Budget July Units to produce 5,000 Direct labor hours needed Cost of direct labor Each unit requires 5 hours of direct labor at a rate of $18 per hour. The company applies variable overhead at the rate of $17 per direct labor hour. Budgeted fixed factory overhead is $176,000 per month. Prepare a factory overhead budget for August. MIAMI SOLAR Factory Overhead Budget August Direct labor hours needed Budgeted variable overhead Budgeted total factory overhead $