2 MCO Leather manufactures leather purses. Each purse requires 3 pounds of direct materials at a cost of $11 per pound and 0.9 direct labor hours at a rate of $15 per hour. Variable overhead is budgeted at a rate of $9 per direct labor hour. Budgeted fixed overhead is $11,000 per month. The company's policy is to end each month with direct materials inventory equal to 30% of the next month's direct materials requirement. At the end of August the company had 6,660 pounds of direct materials in inventory. The company's production budget reports the following. . fx Accessibility tab summary: A statement 1 for student preser B C D Required: (1) Prepare direct materials budgets for September and October. Accessibility tab summary: A statement 2 for studen A B C (2) Prepare direct labor budgets for September and October. (3) Prepare factory overhead budgets for September and October
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