So Much Style manufactures a product which requires 12 pounds of direct materials at a cost of $11 per pound and 7.0 direct labor hours at a rate of $16 per hour. Variable overhead is budgeted at a rate of $3 per direct labor hour. Budgeted fixed overhead is $646,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's direct materials requirement, and finished goods inventory equal to 90% of next month's sales. August sales were 18,800 units, and marketing expects sales to increase by 350 units in each of the upcoming three months. At the end of August, the company had 70,074 pounds of direct materials in inventory, and 17,235 units in finished goods inventory. August sales 18,800 units Expected increase in monthly sales 350 units Desired ending finished goods (units) 90% of next month's unit sales Selling price per unit $810 Direct materials per unit 12 pounds Direct materials cost $11 per pound Direct labor hours (DLHs) per unit 7.0 DLHs per unit Direct labor rate $16 per DLH Budgeted variable overhead $3 per DLH Budgeted fixed overhead $646,000 per month Direct materials policy 30% of next month's direct materials requirement August ending materials inventory 70,074 pounds August ending finished goods inventory 17,235 units Required: 6 (1) Prepare sales budgets for September, October, and November. (2) Prepare production budgets for September, October, and November. 8 (3) Prepare direct materials budgets for September, October, and November. 29 (4) Prepare direct labor budgets for September, October, and November. 0 (5) Prepare factory overhead budgets for September, October, and November