Answer:
Direct Materials Purchases Budget Sept 51680 October 60160
Direct labor Budget September 54600 October 66150
Overhead Budget Sept $ 20920 October $23,230
Explanation:
The budgets are calculated in the following ways.
We multiply the required material , direct labor hour or variable overhead rate with the given number of units and then with the cost per unit to get the total costs.
MCO Leather Goods Manufacturers
Direct Materials
<u>Purchases Budget</u>
September October November
Production 5200 6300 6100
<u>Pounds per units * 2 *2 *2</u>
<u>Total Pounds 10400 12600 12200</u>
Cost per pound * $4 * $4 *$4
<u>Total cost 41600 50400 48800 </u>
On hand
<u>Inventory + 10080 + 9760 --- </u>
Direct Materials
<u>Purchases Budget 51680 60160 </u>
<u></u>
MCO Leather Goods Manufacturers
Direct Labor Budget
September October
Production 5200 6300
<u>Hours required per unit * 0.7 *0.7</u>
Total hours 3640 4410
<u>Rate per hour * $15 *$15</u>
<u>Total labor Cost 54600 66150</u>
MCO Leather Goods Manufacturers
Factory Overhead Budget
September October
Production 5200 6300
<u>Hours required per unit * 0.7 * 0.7</u>
Labor Hours 3640 4410
<u>Variable OH * $3 *$3 </u>
<u>Variable Costs $10920 $13230</u>
<u>Fixed OH + $10,000 +$10,000</u>
<u>Total OH $ 20920 $23,230</u>
