Grady, Inc. manufactures model airplane kits and projects production at 550, 680, 350, and 650 kits for the next four quarters. Direct materials are $9 per kit. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $600, and the company desires to end each quarter with 20% of the materials needed for the next quarters production. Grady desires a balance of $600 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 $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.30 per kit, and fixed overhead is $150 per quarter. Prepare Grady'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. Begin by preparing Grady's direct materials budget. Grady, Inc. Direct Materials Budget For the Year Ended December 31 Second Third First Quarter Quarter Total Quarter Quarter Direct materials cost per unit Direct materials needed for production Plus: Total direct materials needed Less: Choose from any list or enter any number in the input fields and then continue to the next guestion