Exercise 20-15 Manufacturing: Direct materials, direct labor, and overhead budgets LO P1 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hours at a rate of $10 per hour. Variable manufacturing overhead is charged at a rate of $3 per direct labor hour. Fixed manufacturing overhead is $18,000 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 4,580 pounds of direct materials in inventory. The company's production budget reports the following, Production Budget September October November Units to be produced 5,400 6,700 6,000 (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 Required 2 Required Prepare direct materials budgets for September and October MCO Leather Direct Materials Budget For the Months of September and October September October Bucketed production (units) 5,400 6,700 Materials requirements per unit 21 (lbs) 2 Materials needed for production (lbs) 10,800 13,400 Budgeted ending inventory (lbs.) Total materials requirements (lbs) 10,800 13,400 Budgeted beginning inventory (lbs.) Materials to be purchased (lbs) 10,800 13,400 Direct material cost per lb. $ 3 Total bucketed direct materials $ 32,400 $ 40,200 Reture Required 2 > (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 one decimal place.) 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 0 0 needed Direct labor rate per hour Total budgeted direct labor 0 $ 0 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 Budgeted foed overhead Total budgeted factory $ 0 $ overhead 0 0