Carlton, Inc. manufactures model airplane kits and projects production at 450,450,600, and 300 kits for the next four quarters. (i) (Click the icon to view the manufacturing information.) amounts to the nearest whole number. Begin by preparing Carlton's direct materials budget. 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 930 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Carlton desires a balance of 220 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 hours of Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 allocated using direct labor hours as the allocation base. Variable overhead is $0.90 per kit, and fixed overhead is $160 per quarter