Luther, Inc manufactures model airplane kits and projects production at 400, 530, 650, and 300 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 nooded for production budgeted overhead costs, and predetermined overhead allocation rate to two decimal places Round other amounts to the nearest whole number Third Fourth Total Quarter 550 Quarter 300 0 1780 mi Lutherine Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Budgeted kits to be produced 400 530 Direct materials Counces) per it 7 Direct materials needed for production 2800 3710 Plus Desired direct materials in ending inventory Totul direct materials needed Loss Duet materials in beginning inventory Budgeted purchases of direct materials Direct materials cont per ounce Budgeted cout of direct materials purchases 3850 2100 12460 DO Si w Direct materials are 7 ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 920 ounces and the company desires to end each quarter with 10% of the materials needed for the next quarter's production Luther desires a balance of 220 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 $15 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.90 per kit, and fixed overhead is $170 per quarter