Cameron, Inc. manufactures model airplane kits and projects production at 600, 450, 500, and 350 kits for the ne 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 predetermined 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 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 450 500 350 1,900 3 3 3 3 3 1,800 1,350 1,500 1,050 Direct materials (ounces) per kit Direct materials needed for production Desired direct materials in ending Plus: inventory 5,700 405 450 315 230 230 2,205 1,800 1,815 1,280 5,930 Total direct materials needed Direct materials in beginning Less: inventory Budgeted purchases of direct materials 940 405 450 315 940 1,265 1,395 1,365 965 4,990 $ $ 3 3 Direct materials cost per ounce $ 3 $ 3 $ II CA A 3,795 $ $ 4,185 || $ 4,095 2,895 || $ Budgeted cost of direct materials purchases 14,970 | Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) Cameron, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 600 500 1.900 450 0.75 350 0.75 0.75 0.75 0.75 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 450.00 337.50 375.00 262.50 55 1.425.00 55 $ 55 5 55 S 55 $ $ Budgsted direct labor cost 5 24,750 $ 18.563 S 20.625 $ 14,438 78.375 Prepare the manufactuning overhead budget. (Enter all costs and hours as a decimal to two places, XXX Abbreviations used: VOH variable manufacturing overhead: FOH = fixed manufacturing overhead.) moer.) dll Ouier amount Cameron, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter dgeted kits to be produced Total 600 450 500 350 1,900 0.75 rect labor hours per unit rect labor hours needed for duction 0.75 0.75 0.75 0.75 450.00 337.50 375.00 irect labor cost per hour 262.50 1,425.00 $ 55 | $ 55 $ 55 $ 55 $ 55 udgeted direct labor cost $ 24,750 $ 18,563 $ 20.625 $ 14,438 $ 78,375 repare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. bbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Cameron, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Budgeted kits fo be produced Quarter Quarter 450.00 Total 337.50 375.00 262.50 $ 0.80 $ 1,425.00 0.80 $ 0.80 $ 0.80 $ VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs 0.80 360 270 300.4 130.00 501.2 130.00 1431.6 130.00 130.00 46800 130 35100 39052 65156 186108 Direct labor hours Budgeted manufacturing overhead costs Predstmined overhead allocation rate Get more help - Clear all Check answer FIL Pandant More info Direct materials are 3 ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 940 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Cameron desires a balance of 230 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours of direct labor at an average cost of $55 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $130 per quarter. 10 55 6 $75 Print Done