Carlton, Inc. manufactures model airplane kits and projects production at 150, 530, 650, and 750 kits for the next four quarters. 0 (Click the icon to view the manufacturing information.) Prepare Canton'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 Carlton's direct materials budget. More info First Second Third Fourth Direct materials are seven ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignicant and are not included in the Quarter Quarter Quarter Quarter Total budgeting process. Beginning Raw Materials Inventory is 870 ounces, and the Budgeted kits to be produced 150 530 650| 750 2080 company desires to end each quarter with 20% of the materials needed for the next quarter's production. Canton desires a balance of 270 ounces in Raw Direct materials (ounces) per kit 7 7 7| 7 7 Materials inventory at the end of the fourth quarter. Each kit requires 0.50 hours of . . . direct labor at an average cost of $22 per hour. Manufacturing overhead is Direct materials needed for production 1050 3710 4550' 5250 14560 allocated using direct labor hours as the allocation base. Variable overhead is Plus: Desired direct materials in ending inventory 742 910 1050' 270 270 $0.75 per kit, and xed overhead is $140 per quarter. Total direct materials needed 1792 4620 5600 5520 14830 Less: Direct materials in beginning inventory _ _ B70 870 Budgeted purchases of direct materials I Direct materials cost per ounce 3 3 3I 3 3 Budgeted cost of direct materials purchases I Carlton, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct labor hours needed for production Budgeted direct labor cost Quarter Quarter Quarter Quarter Total VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate