MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and

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Mco Leather Manufactures Leather Purses Each Purse Requires 2 Pounds Of Direct Materials At A Cost Of 5 Per Pound And 1 (46.53 KiB) Viewed 11 times

MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $17,000 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 3,520 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce September 4,400 (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 Units to produce October 7,000 Prepare direct materials budgets for September and October. Materials needed for production (pounds) Total materials required (pounds) November 6,000 Materials to purchase (pounds) MCO Leather Direct Materials Budget Cost of direct materials purchases September $ < Required 1 0 0 Octobe 0 $ 0 0 Required 2 >

4 MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $17,000 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 3,520 pounds of direct materials in inventory. The company's production budget reports the following. ts 03:32:43 kipped eBook B Hint Print ferences Production Budget Units to produce Required 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. September 4,400 Complete this question by entering your answers in the tabs below. Units to produce October 7,000 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 6,000 September October $ 0 0 $ < Required 1 0 0 Required 3 >

MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $5 per pound and 0.7 direct labor hour at a rate of $19 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $17,000 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 3,520 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget Units to produce September 4,400 (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. October 7,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Direct labor hours needed Budgeted variable overhead Prepare factory overhead budgets for September and October. November 6,000 MCO Leather Factory Overhead Budget Budgeted total factory overhead September $ $ < Required 2 0 $ October 0 $ 0 0 Required 3 >