E-Lan Electronics Budgeting Project Step 2 E-Lan Electronics is now preparing the budget for direct materials purchases, direct labor, and manufacturing overhead. Each unit production requires 1 Gizmo and 3 Flobs ELan pays 5 7 per Gizmo and $ 2.50 per Flob Management prefers to maintain ending raw materials inventory equal to materials 30% of next month needed in production. Raw materials inventory at the end of last year met that requirement 5 18.00 per hour Each unit of production requires 0.8 direct labor hours at a cost of Variable overhead costs are: Indirect materials 5 0.38 per unit Indirect Labor 5 1.20 per unit Other 5 1.12 per unit Fixed overhead costs per month: Salaries S 212,000 Rent 5 16,000 Depreciation 5 27,000 1. Prepare a direct materials purchases budget for E-Lan Electronics 2. Prepare a direct labor budget for E~Lan Electronics 3. Prepare a manufacturing overhead budget for E-Lan Electronics