labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's direct materials requirement. At the end of August the company had 1,880 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce September 4,700 October 7,000 November 6,500 (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. MCO Leather Direct Materials Budget September October Units to produce Materials needed for production (pounds) Total materials required (pounds) 0 0 Materials to purchase (pounds) 0 0 Cost of direct materials purchases $ 0 $ 0
labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $18,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's direct materials requirement. At the end of August the company had 1,880 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce September 4,700 October 7,000 November 6,500 (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. MCO Leather Direct Materials Budget September October Units to produce Materials needed for production (pounds) Total materials required (pounds) 0 0 Materials to purchase (pounds) 0 0 Cost of direct materials purchases $ 0 $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gadubhai
Transcribed Image Text:labor hour at a rate of $18 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is
$18,000 per month. The company's policy is to end each month with direct materials inventory equal to 20% of the next month's direct
materials requirement. At the end of August the company had 1,880 pounds of direct materials in inventory. The company's production
budget reports the following.
Production Budget
Units to produce
September
4,700
October
7,000
November
6,500
(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.
MCO Leather
Direct Materials Budget
September
October
Units to produce
Materials needed for production (pounds)
Total materials required (pounds)
0
0
Materials to purchase (pounds)
0
0
Cost of direct materials purchases
$
0
$
0
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