E22-24 (similar to) Question Help Austin, Inc, manufactures model airplane kits and projects production at 250, 330, 200, and 550 kits for the next four quarters (Click the icon to view the manufacturing information.) Prepare Austin'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 Fourth Quarter Total 550 1,330 Direct Materials Budget For the Year Ended December 31 First Second Third Quarter Quarter Quarter Budgeted kits to be produced 250 Direct materials (ounces) per kit Direct materials needed for production 1,000 1,320 Plus: Desired direct materials in ending inventory 240 Total direct materials needed 1,560 Less: Direct materials in beginning inventory 396 240 Budgeted purchases of direct materials 1,164 1.220 Direct materials cost per ounce 3 $ 3 S 3 Budgeted cost of direct materials purchases 1,458 $ 3,492 S 3.660 $ 2.200 5,320 210 210 1.396 5,530 2.410 660 910 486 1,750 4,620 5,250 $ 13,860 Prepare the direct labor budget. (Enter any hours as a decimal to two places, XXXand round all other amounts to the nearest whole number.) Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) Austin, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Quarter Quarter Quarter Fourth Quarter Total Direct labor hours needed for production Budgeted direct labor cost Choose from any list or enter any number in the input fields and then click Check Answer. a More Info Direct materials are 4 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 910 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Austin desires a balance of 210 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 $25 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 $135 per quarter. Print Done