Luther, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 250 680 400 750 2,080 Direct materials (ounces) per kit 7 7 7 Direct materials needed for production 1,750 4,760 2,800 5,250 14,560 Plus: Desired direct materials in ending inventory 1,428 840 1,575 280 280 Total direct materials needed 3,178 5,600 4,375 5,530 14,840 870 1,428 840 Less: Direct materials in beginning inventory 1,575 870 Budgeted purchases of direct materials 2,308 4,172 3,535 3,955 13,970 $ 25 25 25 2$ Direct materials cost per ounce $ 4,6165 8,344 7,070 $ Budgeted cost of direct materials purchases 7,910$ 27,940 Luther, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 250 680 400 750 2,080 0.25 0.25 0.25 0.25 Direct labor hours per unit 0.25 Direct labor hours needed for production 62.50 170.00 100.00 187.50 520.00 20$ Direct labor cost per hour 20||$ 20$ 20||$ 20 1250 3. Anns 2.00nlls 3.750 $ 10 Ann Total Fourth Quarter 750 0.25 2,080 0.25 187.50 20$ 520.00 20 3,750||$ 10,400 Direct Labor Budget For the Year Ended December 31 First Second Third Quarter Quarter Quarter Budgeted kits to be produced 250 680 400 Direct labor hours per unit 0.25 0.25 0.25 Direct labor hours needed for production 62.50 170.00 100.00 $ 20 $ Direct labor cost per hour 20$ 20$ $ Budgeted direct labor cost 1,250 $ 3,400 $ 2,000 $ Luther, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Quarter Quarter Quarter Budgeted kits to be produced 250 680 400 VOH cost per kit 0.75$ 0.75 $ 0.75 $ Budgeted VOH $ 187.50||$ 510.00 $ 300.00 $ Budgeted FOH 150.00 150.00 150.00 $ 337.50 $ 660.00 $ Budgeted manufacturing overhead costs 450.00 $ Fourth Quarter Total 750 0.75$ 2,080 0.75 $ 69 562.50 $ 150.00 1,560.00 600.00 712.50 $ 2,160.00 62.50 170.00 100.00 187.50 520.00 Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate $ 2,160.00 4.15 $ Luther, Inc. manufactures model airplane kits. Direct materials are 7 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. Each kit requires 0.25 hours of direct labor at an average cost of $20 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets 2 (Click the icon to view the budgets.) Luther projects sales of 200, 600, 450, and 400 kits for the next four quarters. Luther has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. 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, $X.XX.) Direct materials cost per kit $ 14.00 Direct labor cost per kit 5.00 Manufacturing overhead cost per kit 1.04 20.04 Total projected manufacturing cost per kit Prepare a cost of goods sold budget for the year. (Complete all input fields. Enter "0" for zero balances.) Luther, Inc. Cost of Goods Sold Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Kits produced and sold Total budgeted cost of goods sold