MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 directlabor hour at a rate of $12 per hour. Variable overhead is budgeted at a rate of $2 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 directmaterials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company'sproduction budget reports the following.Production BudgetUnits to produceRequired 1(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.September4,300Complete this question by entering your answers in the tabs below.Units to produceOctober6,800Required 2 Required 3Prepare direct labor budgets for September and October. (Round "DL hours required per unit" answers to one decimal place.)Direct labor hours neededCost of direct laborMCO LeatherDirect Labor BudgetNovember6,100September October$00 S00

Direct labor budget is used for estimating the direct labor hours and for estimating the direct…

labor hour at a rate of $12 per hour. Variable overhead is budgeted at a rate of $2 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 dir materials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce September 4,300 (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. Units to produce October 6,800 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.) Direct labor hours needed Cost of direct labor MCO Leather Direct Labor Budget November 6,100 September October S 0 0 S 0 0

labor hour at a rate of $12 per hour. Variable overhead is budgeted at a rate of $2 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 dir materials requirement. At the end of August the company had 2,580 pounds of direct materials in Inventory. The company's production budget reports the following. Production Budget Units to produce September 4,300 (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. Units to produce October 6,800 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.) Direct labor hours needed Cost of direct labor MCO Leather Direct Labor Budget November 6,100 September October S 0 0 S 0 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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