Direct materialif are seven 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 860 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Oliver desires a balance of 290 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 $45 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.50 per kit, and fixed overhead is $125 per quarter. \begin{tabular}{|c|c|c|c|c|c|} \hline & \begin{tabular}{l} Oliver, \\ ufacturing O \\ the Year Ende \end{tabular} & \begin{tabular}{l} nc. \\ December \end{tabular} & & & \\ \hline & \begin{tabular}{l} First \\ Quarter \end{tabular} & \begin{tabular}{l} Second \\ Quarter \end{tabular} & \begin{tabular}{l} Third \\ Quarter \end{tabular} & \begin{tabular}{l} Fourth \\ Quarter \end{tabular} & Total \\ \hline Budgeted kits to be produced & 450 & 220 & 250 & 550 & 1,470 \\ \hline VOH cost per kit & 0.50 & 0.50 & 0.50 & 0.50 & 0.50 \\ \hline Budgeted VOH & & & & & \\ \hline Budgeted FOH & 125.00 & 125.00 & 125.00 & 125.00 & 500.00 \\ \hline Budgeted manufacturing overhead costs & & & & & \\ \hline Direct labor hours & & & & & \\ \hline \begin{tabular}{l} Budgeted manufacturing overhead costs \\ Predetermined overhead allocation rate \end{tabular} & & & & & \\ \hline \end{tabular} Oliver, Inc. manufactures model airplane kits and projects production at 450,220,250, and 550 kits for the next four quarters. (Click the icon to view the manufacturing information.) Prepare Oliver'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{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ For the Year Ended December 31} \\ \hline & \begin{tabular}{c} First \\ Quarter \end{tabular} & \begin{tabular}{l} Second \\ Quarter \end{tabular} & \begin{tabular}{l} Third \\ Quarter \end{tabular} & \begin{tabular}{l} Fourth \\ Quarter \end{tabular} & & Total \\ \hline Budgeted kits to be produced & 450 & 220 & 250 & 550 & & 1,470 \\ \hline Direct labor hours per unit & + 0.75 & 0.75 & 0.75 & 0.75 & & 0.75 \\ \hline Direct labor hours needed for production & 337.50 & 165.00 & 187.50 & 412.50 & & 1,102.50 \\ \hline Direct labor cost per hour & 45 & 45 & 45 & 45 & $ & 45 \\ \hline Budgeted direct labor cost & $15,188 & 7,425 & 8,438 & 18,563 & $ & 49,613 \\ \hline \end{tabular}