Direct materials budget, direct labor budget, and manufacturing overhead budget
10:02 Preston, Inc, manufactures model airplane kits and projects production at 450, 420 200, and 500 kits for the next four quarters (Click the icon to view the manufacturing information) Prepare Preston's direct materials budget, direct labor budget and manufacturing overhead budget for the year. Round the direct labor nous needed for production budgeted overhead costs, and predetermined overhead location rate to two decimal places. Round other amounts to the nearest whole number Begin by preparing Preston's direct material budget Preston, Inc. Direct Materials Budget For the Year Ended December First Second Quarter Quarter Quarter Third Fourth Quarter Diret materials ( one per Membut Debut For the Decor Fel eget O Seo Our VOH VON FO Fourth 10:02 First Quarter Second Quarter Third Quarter Derect materiale foonces) per Despre ending Det Porte Seco hemu VON Direct materials are six 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 870 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Preston desires a balance of 290 ounces in Raw Materials inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct laborat an average cost of $40 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.90 per kit, and fixed overhead is $160 por quarter. 10:02 Preston, Inc, manufactures model airplane kits and projects production at 450, 420 200, and 500 kits for the next four quarters (Click the icon to view the manufacturing information) Prepare Preston's direct materials budget, direct labor budget and manufacturing overhead budget for the year. Round the direct labor nous needed for production budgeted overhead costs, and predetermined overhead location rate to two decimal places. Round other amounts to the nearest whole number Begin by preparing Preston's direct material budget Preston, Inc. Direct Materials Budget For the Year Ended December First Second Quarter Quarter Quarter Third Fourth Quarter Diret materials ( one per Membut Debut For the Decor Fel eget O Seo Our VOH VON FO Fourth 10:02 First Quarter Second Quarter Third Quarter Derect materiale foonces) per Despre ending Det Porte Seco hemu VON Direct materials are six 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 870 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Preston desires a balance of 290 ounces in Raw Materials inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct laborat an average cost of $40 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.90 per kit, and fixed overhead is $160 por quarter
