EM7-25 (similar to) Question Help Kelvin, Inc. manufactures model airplane kits. Direct materials are two 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. Each kit requires 0.75 hours of direct labor at an average cost of $50 per hour. Manufacturing overhead s allocated using direct labor hours as the allocation base. The company has prepared the following budgets (Click the icon to view the budgets.) Kelvin projects sales of 400, 200, 400, and 100 kits for the next four quarters. Kelvin has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, $X.XX.) i Reference - X Kelvin, Inc. Total projected manufacturing cost per kit Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 450 530 600 650 2,230 Direct materials (ounces) per kit 2 Direct materials needed for production 900 1,060 1,200 1,300 4.460 318 360 390 24 240 Plus: Desired direct materials in ending inventory v Total direct materials needed 1,218 1,420 1,590 1,540 4,700 Less: Direct materials in beginning inventory 860 318 360 390 860 > Budgeted purchases of direct materials 358 1,102 1,230 1,150 3,840 Direct materials cost per ounce S 2 Budgeted cost of direct materials purchases 716 $ 2,204 $ 2,460 2,300 $ 7.680 Kelvin, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 450 530 600 650 2,230 Choose from any list or enter any number in the input fields and then click Check Answer. 0.75 0.75 0.75 0.75 Direct labor hours per unit 0.75 part Direct labor hours needed for production 337.50 397.50 450.00 187.50 1,672.50 Iter 50 $ Direct labor cost per hour 50$ Check Answer remaining 50 5 50 $ 50Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 450 530 600 650 2.230 0.75 0.75 0.75 0.75 0.75 Direct labor hours per unit Direct labor hours needed for production 337.50 397.50 450.00 487.50 1,672.50 50 50 50 50 50 Direct labor cost per hour 16,875 $ 19,875 $ 22,500 24,375 $ 83,625 Budgeted direct labor cost Kelvin, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 450 530 600 650 2,230 $ 0.80 $ 0.80 $ 0.80 $ VOH cost per kit 0.80| $ 0.80 Budgeted VOH 360.00 $ 424.00 $ 480.00 $ 520.00 $ 1,784.00 Budgeted FOH 135.00 135.00 135.00 135.00 540.00 $ 495.00 $ 559.00 $ 615.00 $ 655.00 $ 2,324.00 Budgeted manufacturing overhead costs Direct labor hours 337.50 397.50 450.00 487.50 1,672.50 Budgeted manufacturing overhead costs 2,324.00 1.39 Predetermined overhead allocation rate Print Done