Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,000 units (solar panels) in July and 4,700 units in August. Part 1 of 2 8 00:54:18 Each unit requires 2 pounds of direct materials, which cost $5 per pound. The company's policy is to maintain direct materials inventory equal to 40% of the next month's direct materials requirement. As of June 30, the company has 3,200 pounds of direct materials in inventory, which complies with the policy. Prepare a direct materials budget for July. 4,000 2 MIAMI SOLAR Direct Materials Budget For Month Ended July 31 Budget production (units) Materials requirements per unit Materials needed for production (lbs.) Add: Budgeted ending inventory (lbs.) Total materials requirements (lbs.) Less: Beginning inventory (lbs.) Materials to be purchased (lbs.) Materials price per pound Budgeted cost of direct materials purchases 8,000 3,760 11,760 (3,200) 8,560 5 42,800 $ $ $ Required information Miami Solar manufactures solar panels for industrial use. The company budgets production of 4,000 units (solar panels) in July and 4,700 units in August. Each unit requires 4 hours of direct labor at a rate of $12 per hour. Variable factory overhead is budgeted to be 70% of direct labor cost, and fixed factory overhead is $177,000 per month. Prepare a factory overhead budget for August. MIAMI SOLAR Factory Overhead Budget For Month Ended August 31 Total budgeted direct labor $ Variable overhead rate Budgeted variable overhead 1 $ Budgeted fixed overhead Budgeted total overhead $ 225,600 70% 157,920 177,000 334,920