IE Exercise 20-15 (Static): 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 $4 per pound and 0.8 direct labor hours at a rate of $16 per hour. Variable overthead is budgeted at a rate of $2 per direct labor hour. Budgeted flxed overhead is $10,000 per month. The company's policy is to end each month with direct materials inventory equal to 40% of the next month's direct materiats requirement. At the end of August the company had 3.680 pounds of direct materials in inventory. The company's production budget reports the following. (1) Prepare direct materials budgets for September and October. (2) Prepare direct labor budgets for September and Octobor. (3) Prepare factory overhead buidgets for September and October. Navigation: 1. Use the Open Excel in New Tab button to launch this question. 2. When finished in Excel, use the Save and Return to Assignment button in the lower right to relum to Connect For an answer to be graded as correct, you must use an Excel formula: 1. Begin each formula with an = sign. 2. Reference cells, instead of entering values. Example: =B3+C3 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $4 per pound and 0.8 direct labor hours at a rate of $16 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $10,000 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 3,680 pounds of direct materials in inventory. The company's production budget reports the following. (1) Prepare direct materials budgets for September and October. (3) Prepare factory overhead budgets for September and October. Students: The scratchpad area is for you to do any additional work you need to solve this question or can be used to show your work: Nothing in this area will be graded, but it will be submitted with your assignment