E22-24 (similar to) Homer, Inc. manufactures model airplane kits and projects production at 200, 270, 500, and 400 kits for the next four quarters (Click the icon to view the manufacturing information.) Prepare Homer's direct materials budget, direct labor budget, and manufacturing overhead budget for the year, Round the direct labor hours needed for produc decimal places. Round other amounts to the nearest whole number Begin by preparing Homer's direct materials budget Homer, Inc. Direct Materials Budget For the Year Ended December 31 More Info First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct materials are Indirect materials are process Beginning P desires to end each c production Homer de the and of the fourth c average cost of $55 p labor hours as the allo 500 Budgeted kits to be produced 200 270 400 1,370 0.25 0.25 0.25 0.25 0.25 Direct materials (ounces) per kit 67.5 50 100 120 342 5 125 Direct materials needed for production 81 60 150 411 Desired direct materials in ending inventory Plus 220 148.5 275 753.5 110 Total direct materials needed overhead is $125 per o 150 120 125 60 81 Direct materials in beginning inventory Less 633 5 70 -15 88.5 194 Budgeted purchases of direct materials 12 3 3 Direct materials cost per ounce 582 7,602 210 45 265.5 Budgeted cost of direct materials purchases Answer Choose from any list or enter any number in then input fields and then click Che parts remaining Clear All 2 Type here to search udget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate to two - X More Info Third Fourth Quarter Quarter Total Direct materials are 7 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 30% of the materials needed for the next quarter's production. Homer desires a balance of 220 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 $55 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.25 per kit, and fixed overhead is $125 per quarter 500 400 1,370 0.25 0.25 0.25 125 100 342.5 150 120 411 275 220 753.5 150 81 120 70 194 633.5 Print Done 12 S82 210 7 602 k Answer Check Answer Clear All 718 PM 6/23/2019 PgDn 12 Del PqUp Home End F7 FS