Question: please help this is all one question 2 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct 5 3 materials at a

please help this is all one question
please help this is all one question 2 MCO Leather manufactures leather
purses. Each purse requires 2 pounds of direct 5 3 materials at
a cost of $4 per pound and 0.8 direct labor hour at

2 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct 5 3 materials at a cost of $4 per pound and 0.8 direct labor hour at a rate of $16 per hour. 4 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 6 materials inventory equal to 40% of the next month's direct materials requirement. At the 7 end of August the company had 3,680 pounds of direct materials in inventory. The 8 company's production budget reports the following. 9 10 Production Budget September October 4,600 6,200 November 5,800 11 Units to produce 12 13 Required: 14 (1) Prepare direct materials budgets for September and October. 15 16 (Use cells A2 to H11 from the given information to complete this question.) 17 MCO Leather Direct Materials Budget September October 21 Units to produce 23 Materials needed for production (pounds) 24 25 Total materials required (pounds) 27 A 102920333386 DM per unit (pounds) VOH rate per DLH $2 DLHS per unit DM Cost per pound $4 0.80 Foxed Overhead Direct Materials requirement $10,000 40% Direct Labor rate per hour $16 August ending inventory 3,680 B 18 19 September 20 21 Units to produce 22 23 Materials needed for production (pounds) 24 25 Total materials required (pounds) 26 27 Materials to purchase (pounds) 28 29 Budgeted direct materials purchases 30 31 (2) Prepare direct labor budgets for September and October. 32 33 (Use cells A2 to H11 from the given information to complete this question.) 34 35 MCO Leather Direct Labor Budget 36 37 September October 38 Units to produce 39 40 Direct labor hours needed 41 42 Budgeted direct labor cost 43 MCO Leather Direct Materials Budget C October Direct labor hours required per unit D E 4.3 A 36 37 September October 38 Units to produce 39 Direct labor hours required per unit 40 Direct labor hours needed 41 42 Budgeted direct labor cost 3 4 (3) Prepare factory overhead budgets for September and October. -5 6 (Use cells A2 to H11 from the given information to complete this question.) B MCO Leather Factory Overhead Budget September October Direct labor hours needed Budgeted variable overhead Budgeted fixed overhead Budgeted total factory overhead 9 Direct Labor Budget D $ E Le

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!