Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It forecasts sales of 225,000 units in the second quarter and 262,500 units in the third quarter. It also plans production of 52,500 units for the third quarter. Based on this information, the company plans to produce 240,000 units in the second quarter. Other information is as follows

Prepare a direct materials budget for the second quarter.

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Direct materials.. Direct labor.. Variable overhead Fixed overhead Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 50% of next quarter's budgeted materials requirements. Each finished unit requires 4 direct labor hours, at a cost of $9 per hour. Applied at the rate of $11 per direct labor hour. Budgeted at $450,000 per quarter