Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Luther Company Manufacturing Overhead Budget For the Year Ended December 31 Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate First Second Third Fourth Quarter Quarter Quarter Quarter Total 300 620 250 450 1,620 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 75.00 155.00||$ 62.50||$ 112.50||$ 405.00 175.00 175.00 175.00 175.00 700.00 250.00 $ 330.00||$ 237.50 $ 287.50 $ 1,105.00 150.00 310.00 125.00 225.00 EA 810.00 1,105.00 1.36 Budgeted kits to be produced Direct labor hours per unit Luther Company Direct Labor Budget For the Year Ended December 31 Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost First Second Third Fourth Quarter Quarter Quarter Quarter Total 300 620 250 450 1,620 0.50 0.50 0.50 0.50 0.50 150.00 310.00 125.00 225.00 810.00 25$ 25$ 25$ 25 $ 25 3,750 $ 7,750 $ 3,125 $ 5,625 $ 20,250 Luther Company Direct Materials Budget For the Year Ended December 31 First Quarter Second Third Fourth Quarter Quarter Quarter Total Budgeted kits to be produced 300 620 250 450 1,620 3 3 3 3 3 Direct materials (ounces) per kit Direct materials needed for production 900 1,860 750 1,350 4,860 186 75 135 260 260 Plus: Desired direct materials in ending inventory Total direct materials needed 1,086 1,935 885 1,610 5,120 920 186 75 135 920 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 166 1,749 810 1,475 4,200 EA Direct materials cost per ounce Budgeted cost of direct materials purchases $ $ 2 $ 2 $ 2 $ 2 $ 2 EA 332 $ 3,498 $ 1,620||$ 2,950||$ 8,400 Luther Company manufactures model airplane kits. Direct materials are three ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.50 hours of direct labor at an average cost of $25 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: View the budgets Luther Company projects sales of 200, 500, 400, and 300 kits for the next four quarters. Luther Company 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 your answers to two decimal places, $X.XX.) Direct materials cost per kit Direct labor cost per kit Manufacturing overhead cost per kit Total projected manufacturing cost per kit 6 12.5