I have tried doing this problem but I can't seem to understand. It has three parts, but this is part one.

Luther, Inc. manufactures model airplane kits and projects production at 200, 360, 550, and 350 kits for the next four quarters. (Click the icon to view the manufacturing information.) Prepare Luther'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. i More Info Begin by preparing Luther's direct materials budget. Luther, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Third Quarter Fourth Quarter Total Direct materials are four 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 900 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Luther desires a balance of 210 ounces 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 $55 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 s $175 per quarter. Direct materials (ounces) per kit Direct materials needed for production Plus: Total direct materials needed 1 Print Done Less Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases