Kelvin, Inc. manufactures model airplane kits. Direct materials are 4 ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in Kthe budgeting process. Each kit requires 0.75 hours of direct labor at an average cost of $35 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets (Click the icon to view the budgets.) Kelvin projects sales of 400, 100, 600, and 800 kits for the next four quarters. Kelvin has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kita. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, SXXX) Total projected manufacturing cost per kit Reference Kelvin, Inc. Direct Materials Budget For the Year Ended December 31 - X First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 530 550 450 2,130 Direct materials (ounces) per kit 41 41 4 4 4 Direct materials needed for production 2,400 2,120 2,200 1,800 8,520 Plus: Desired direct materials in ending inventory 212 220 180 220 220 Total direct materials needed 2,612 2,340 2,380 2,020 8,740 Less: Direct materials in beginning inventory 920 212 220 180 920 Budgeted purchases of direct materials 1,692 2,128 2,160 1,840 7,820 Direct materials cost per ounce $ 4 $ 4 S 4 $ 4 $ 4 $ 6,768 $ 8,512 $ 8,640 $ 7,360 $ 31,280 Budgeted cost of direct materials purchases Kelvin, Inc. Direct Labor Budget For the Year Ended December 31 Print Done sides bor fact Budgeted cost of direct materials purchases Kelvin, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 530 550 450 2,130 0.75 0.75 0.75 0.75 0.75 Direct labor hours per unit Direct labor hours needed for production 450.00 397.50 412.50 337.50 1,597.50 $ Direct labor cost per hour 35 $ 35 $ 35 $ 35 $ 35 $ 15,750 $ 13,913 $ 14,438 $ 11,813 $ 55,913 Budgeted direct labor cost Kelvin, Inc. Budgeted kits to be produced Manufacturing Overhead Budget For the Year Ended December 31 First Second Quarter Quarter Third Quarter Fourth Quarter Total 600 530 550 450 lle 070 nolle 2,130 070 factur Direct labor cost per hour fac $ Budgeted direct labor cost 15,750 $ 13,913 $ 14,438 $ 11,813 $ 55,913 Kelvin, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 530 550 450 2,130 VOH cost per kit $ 0.70 $ 0.70 $ 0.70 $ 0.70 $ 0.70 Budgeted VOH $ 420.00 $ 371.00 $ 385.00 $ 315.00 $ 1,491.00 150.00 150.00 150.00 Budgeted FOH 150.00 600.00 $ 570.00 $ 521.00 $ 535.00 $ 465.00 $ 2,091.00 Budgeted manufacturing overhead costs Direct labor hours 450.00 397.50 412.50 337.50 1,597.50 Budgeted manufacturing overhead costs Predetermined overhead allocation rate $ 2,091.00 $ 1.31