Luther, Inc. manufactures model airplane kits and projects production at 550, 530, 300, and 500 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 oroduction budastad aarbaad casto and oradatorminad svarbaad allocation cats to buodecimal place amounts to the nearest whole number More Info Begin by preparing Luther's direct materials budget. Luther, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Direct materials are 6 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 870 ounces, and the company desires to end each quarter with 30% 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 $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $170 per quarter. Quarter Quarter Quarter Quarter Total 550 530 300 500 1,880 6 61 6 6 3,180 1,800 Print Done Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory Total direct materials needed Less: Direct materials in beginning inventory Budgeted purchases of direct materials 3,300 954 3,000 2101 11,280 210 540 900 4,254 3,720 2,700 11,490 3,210 900 870 954 540 870 3,384 2,766 2,160 2,310 10,620 1 Direct materials cost per ounce 3,384 2.766 2.160 2,310 Budgeted cost of direct materials purchases 10,620 Pronare the direct lahor hudnet (Enter any hours as a decimal to two nlaces Y YY and round all other amounte to the nearest whole number Luther, Inc. manufactures model airplane kits and projects production at 550, 530, 300, and 500 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. Luther, inc. Direct Labor Budget _ x More Info For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct materials are ounces of plastic per kit and the plastic costs $1 per ounce. 550 Budgeted kits to be produced 530 Indirect materials are considered insignificant and are not included in the budgeting 300 500 1,880 process. Beginning Raw Materials Inventory is 870 ounces, and the company Direct labor hours per unit 0.50 0.5 0.5 0.5 0.5 desires to end each quarter with 30% of the materials needed for the next quarter's production. Luther desires a balance of 210 ounces in Raw Materials Inventory at Direct labor hours needed for production 275 265 150 250 940 the end of the fourth quarter. Each kit requires 0.50 hours of direct labor at an 50 Direct labor cost per hour average cost of $50 per hour. Manufacturing overhead is allocated using direct 50 50 50 50 labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed 13,750 13.250 7.500 12.500 Budgeted direct labor cost overhead is $170 per quarter. 47,000 Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable n Print Done Luther, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Luther, Inc. manufactures model airplane kits and projects production at 550, 530, 300, and 500 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. 13,750 13,250|. 7,500|| 12,5001 47,000 Budgeted direct labor cost - X More Info Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable n Luther, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Direct materials are 6 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 870 ounces, and the company desires to end each quarter with 30% 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 $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $170 per quarter. Total VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Print Done Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate