EM7-24 (similar to) Oliver, Ino manufactures model airplane kits and projects production at 350, 450, 150, and 650 kits for the next four quarters Chok the toon 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 product Begleby preparing Oliver's direct materials budget Oliver, Inc Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Third Fourth Quarter Quarter Total Det mates (ounces per Direct manas de for production Pro Tenis needed Budud purchase or direct material ecco per ounce Boded costo director purchase More Info Direct materials are six 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 900 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 210 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $50 per hour Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.50 per kit and faced overhead is $175 per quarter. Print Done