Austin, Inc. manufactures model airplane kits. Direct materials are two ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.75 hours of direct labor at an average cost of $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: (Click the icon to view the budgets.) Austin projects sales of 200, 100, 400, and 700 kits for the next four quarters. Austin has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round you Direct materials cost per kit 8 Direct labor cost per kit Manufacturing overhead cost per kit Total projected manufacturing cost per kit 11.25 Reference Austin, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Third Fourth Quarter Quarter Quarter Total Budgeted kits to be produced 600 420 2 2 150 2 550 2 1,720 2 Direct materials (ounces) per kit Direct materials needed for production 1,200 840 300 1,100 3,440 84 30 110 240 240 Plus: Desired direct materials in ending inventory Total direct materials needed 1,284 870 410 1,340 3,680 Less: Direct materials in beginning inventory 950 84 30 110 950 Budgeted purchases of direct materials 334 786 380 1,230 2,730 Direct materials cost per ounce 4 $ 4 $ 4 $ 4 $ 4