Kelvin, Inc. manufactures model airplane kits and projects production at 250, 270, 400, and 750 kits for the next four quarters. (Click the icon to view the manufacturing information.) Prepare Kelvin'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 Kelvin's direct materials budget. Direct materials (ounces) per kit Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Kelvin, Inc. Direct Materiale Budget For the Year Ended December 31 First Quarter Second Quarter Third Fourth Quarter Quarter Total 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.) Direct labor hours needed for production Kelvin, Inc. Direct Labor Budget First Quarter For the Year Ended December 31 Second Quarter Third Quarter Fourth Quarter Total More info Direct materials are seven ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 930 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Kelvin desires a balance of 290 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 $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.50 per kit, and fixed overhead is $160 per quarter. Print Done Budgeted direct labor cost Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead; FOH = fixed manufacturing overhead.) Kelvin, Inc. Manufacturing Overhead Budget For the Year Ended December 31 VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate First Quarter Second Quarter Third Quarter Fourth Quarter Total --