Cameron, Inc. manufactures model airplane kits and projects production at $550,450,150,$ and $700$ kits for the next four quarters.

$($Click the icon to view the manufacturing information.$)$

Prepare Cameron's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermir overhead allocation rate to two decimal places. Round other amounts to the nearest whole number.

Begin by preparing Cameron's direct materials budget.

Cameron, Inc.

Direct Materials Budget

For the Year Ended December $31$

Direct materials $($ounces$)$ per kit

Direct materials needed for production

Plus:

Total direct materials needed

Less: $$ Second

Budgeted purchases of direct materials

More info

Direct materials are two ounces of plastic per kit and the plastic costs $$2$ per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $950$ ounces, and the company desires to end each quarter with $20\%$ of the materials needed for the next quarter's production. Cameron desires a balance of $210$ ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires $0\mathrm{.}50$ hours of direct labor at an average cost of $$25$ per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $$0\mathrm{.}70$ per kit, and fixed overhead is $$155$ per quarter.