Grady. Inc. manufactures model airplane kits and projects production at 550, 680, 350, and 650 kits for the next four quarters. Direct materials are S9 per kit. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is exist600, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Grady desires a balance of exist600 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 exist50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is exist0.30 per kit, and fixed overhead is exist150 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