Exerclse $20-15($Algo$)$ Manufacturing: Direct materlals, dlrect labor, and overhead budgets LO P$1$

MCO Leather manufactures leather purses. Each purse requires $2$ pounds of direct materials at a cost of $$3$ per pound and $0\mathrm{.}7$ direct labor hour at a rate of $$15$ per hour. Variable overhead is budgeted at a rate of $$3$ per direct labor hour. Budgeted fixed overhead is $$15,000$ per month. The company's policy is to end each month with direct materials inventory equal to $40\%$ of the next month's direct materials requirement. At the end of August the company had $3\mathrm{.}520$ pounds of direct materials in inventory. The company's production budget reports the following.

$\backslash$table$[[$Production Budget,September,October,November$],[$Units to produce,$4,400,7,080,6,000]]$

$(1)$ 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 $1$

Required $2$

Required $3$

Prepare direct materials budgets for September and October.

$\backslash$table$[[$McO Leather,,$],[$Direct Materials Budget,,$],[,$September,October$],[$Units to produce,$2,52],[,-,-],[$Materials needed for production $($pounds$),-,-],[,,-],[$Total materials required $($pounds$),5,0],[,-,],[$Materials to purchase $($pounds$),2,0],[,,],[$Cost of direct materials purchases,$5,$$