EXERCISE 8-3 Direct Materials Budget @ Three grams of musk oil are required for each bottle of Mink Caress, a very popelar perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production or Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: The inveatory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2 Required