Luther, Inc. manufactures model airplane kits and projects production at 250, 120, 150, and 750 kits for the next four quarters. i (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. First Second Third Fourth Quarter Quarter Quarter Quarter Total 250 120 150 750 1,270 4 4 4 4 Budgeted kits to be produced Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory 480 600 1,000 144 3,000 290 5,080 290 More Info 180 900 Total direct materials needed 660 5,370 1,144 920 1,500 180 3,290 900 144 920 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 224 516 1,320 2,390 4,450 2 Direct materials cost per ounce $ 2 $ 2 $ 2||$ Direct materials are four 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 920 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 290 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 $25 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.75 per kit, and fixed overhead is $125 per quarter. $ 448 $ 1,032 $ 2,640 $ 4,780 $ 8,900 Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours as a decimal to two places, XXX, and round all other amounts to the nearest whole number.) Print Done Luther, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct labor hours needed for production Budgeted direct labor cost Choose from any list or enter any number in the input fields and then click Check