Direct materials cost per ounce Budgoted cost of direct matorials purchases Propare the direct labor budget. (Entor any hours as a decimal to two places, XX, and round all other amounts to the nearest wholo numbec). Homer, Inc. Direct Labor Budget For the Year Ended December 31 olve this Demodocs example Get more help - Clear all Direct materials are four ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materiais are considered insignificant and are not included in the budgeting procest. Beginning Raw Materials lnventory is 860 ounces, and the company desires to end each quarter with 30 wh of the materials needed for the next quarter's production. Homer desires a balance of 290 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 hours of direct labor at an average cost of $35 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and foxed overthead is $125 per quarter. Direct materials are four ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materiais are considered insignificant and are not included in the budgeting procest. Beginning Raw Materials lnventory is 860 ounces, and the company desires to end each guarter with 30% of the materials needed for the next quarter's production. Homer desires a balance of 290 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0,50 hours of direct labor at an average cost of 535 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and foxed overthead is $125 per quarter