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MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $20 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $19,000 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 3,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 7,000 6,600 (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 Prepare direct materials budgets for September and October. Inite to produce 20 Required 3 000 DOO MCO Leather Direct Materials Budget O < Prev A September 4 500 4 of 5 :8 October 7 000 Next > DII Check my work F10 ( F11 F12

MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $20 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $19,000 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 3,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 7,000 6,600 (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 Prepare direct materials budgets for September and October. Inite to produce 20 Required 3 000 DOO MCO Leather Direct Materials Budget O < Prev A September 4 500 4 of 5 :8 October 7 000 Next > DII Check my work F10 ( F11 F12

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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Pls also explain how to get materials needed for production, desired ending materials inventory, and beginning materials inventory
MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $20 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $19,000 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 3,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 7,000 6,600 (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 Prepare direct materials budgets for September and October. Inite to produce 80 Required 3 000 MCO Leather Direct Materials Budget < Prev A September 4 500 4 of 5 # :8 October 7 000 Next > DII Check my work F10 ( F11 (1) F12
Transcribed Image Text:MCO Leather manufactures leather purses. Each purse requires 2 pounds of direct materials at a cost of $3 per pound and 0.7 direct labor hour at a rate of $20 per hour. Variable overhead is budgeted at a rate of $2 per direct labor hour. Budgeted fixed overhead is $19,000 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 3,600 pounds of direct materials in inventory. The company's production budget reports the following. Production Budget September October November Units to produce 4,500 7,000 6,600 (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 Prepare direct materials budgets for September and October. Inite to produce 80 Required 3 000 MCO Leather Direct Materials Budget < Prev A September 4 500 4 of 5 # :8 October 7 000 Next > DII Check my work F10 ( F11 (1) F12
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