Homer, Inc. manufactures model airplane kits and projects production at 450, 120, 350, and 650 kits for the next four quarters.

First Second Third Fourth Quarter Quarter Quarter Quarter Total 450 120 350 650 1,570 2 2. 2 2. 2 900 240 700 390 1,300 280 3,140 280 72 210 Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce 972 450 1.090 3,420 1,580 390 940 72 210 940 32 378 880 1.190 2.480 $ 4 $ 4 $ 4 $ 4 $ 4 $ 128 | $ 1,512 $ 3.520 4,760 Budgeted cost of direct materials purchases $ 9,920 Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) More Info Homer, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct materials are two ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 940 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Homer desires a balance of 280 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 $22 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.40 per kit, and fixed overhead is $160 per quarter. Direct labor hours needed for production Budgeted direct labor cost Drint Done