ay, June, and July. On April hand but desires to maintain an ending inventory of 105 1096 of the next months sales. Prepare a sales budget and a production budget for Gorman for April, May, and June. Learning Objective 3 3.25 Preparing an operating budget-direct materials, direct labor, and manufacturing overhead budgets 2nd Qtr. OH $587.50 cor, Inc. manufactures model airplane kits and projects production at 500, 570, no and 450 kits for the next four quarters. Direct materials are $10 per kit. Indirect "arerials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $200, and the company desires to end each Parter with 309% of the materials needed for the next quarter's production. Trevor "sires a balance of $200 in Raw Materials Inventory at the end of the fourth quar- Each kit requires 0.75 hours of direct labor at an average cost of $25 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. variable overhead is $0.75 per kit, and fixed overhead is $160 per quarter. Prepare revor's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted werhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number