Saved Help Save & Exit Submit work Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 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 $15 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $11,000 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 3,980 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October Units to be produced 5,300 6,100 November 7,000 (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) 5.300 7,000 Materials requirements per unit (lbs) Materials needed for production (lbs.) 15.900 21.000 Budgeted ending inventory (lbs) 6,300 6,300 Total materials requirements (lbs.) 22 200 27.300 Budgeted beginning inventory (lbs) Materials to be purchased (lbs) 22 200 27,300 Direct material cost per lb. Total budgeted direct materials $ 0 $ 0 Required 2 > Saved Save & Exit Submit work Help Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 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 $15 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $11,000 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 3,980 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September November Units to be produced 5,300 6,100 October 7,000 (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 labor budgets for September and October (Round "DL hours required per unit" answers to on MCO Leather Direct Labor Budget For the Months of September and October September October Budgeted production (units) DL hours required per unit Total direct labor hours needed 0 0 Direct labor rate per hour Total budgeted direct labor $ $ 0 D Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 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 $15 per hour. Variable manufacturing overhead is charged at a rate of $2 per direct labor hour. Fixed manufacturing overhead is $11,000 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 3,980 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to be produced 5,300 7,000 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 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 Budgeted variable overhead 0 0 Budgeted fixed overhead Total budgeted factory overhead $ 0 $ 0