Luther, Inc. manufactures model airplane kits and projects production at 250, 120, 350, and 300 kits for the next four quarters.

Lutter, Inc manutach.ras mode Aralan kls and projects production 250, 450, 200, and 300 kis for the next four quarters. Click the icon to view the manufacturing namation.) Prepare Luther's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Raund the direct labor tours needed for production, budgeted overhead costs, and predetermined overhead alocation rate to tac deairal places. Round other amaurts to the nearest whole number Bagin by praparing Luther's dramt materias budget. Luther, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Third Fourth Quarter Quarter Total Direct materiale ources) per kil Direct materiais needed for production Plus Total direct salurals needed Lees: LEO Buidigertad purchases of clect materials Direct materials cost per ounce Butiyeled cusl ufciret materiale purchases Direct materials are five 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 890 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 250 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.75 hours of direct labor at an average cost of $55 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