Luther, Inc. manufactures model airplane kits and projects production at $450,680,150,$ and $700$ 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.

Begin by preparing Luther's direct materials budget.