Luther, Inc. manufactures model airplane kits Direct materials are six curioss of plastic per and the plastic costs $2 per ono Indirect materials are considered grant and are not induene og prooss. Each kit requires 0.50 hours of direct laborat an average cost of 25 per hour Maruling overhead is located using director house the locationThe company has prepared the fing budgets Click the icon to wow the budgets Lutet project sales of 200000.700 and 600 kits for the next four quarter. Le has not in beginning inventory Determine the cost per kit to manifacture the models Preacul good sold budget for the year Round amounts to two decimal places Determine the cost per it to manufacture the model planets Round your wood, XXX Total projected manufacturing cost perlit Luther, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 350 6 450 6 650 6 700 B 2.150 6 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 2.100 810 2,700 1,170 3,900 1,260 4,200 240 12,900 240 2,910 940 3,870 810 5,160 1,170 4,440 1,260 13,140 940 Qui Reference 3,900 1,260 4,200 240 12,900 240 5,160 1.170 4,440 1,260 13,140 940 Direct materials needed for production 2,100 2,700 Plus: Desired direct materials in ending inventory 810 1,170 Total direct materials needed 2,910 3,870 Less: Direct materials in beginning inventory 940 810 Budgeted purchases of direct materials 1,970 3,060 I Direct materials cost per ounce $ 2 $ 2$ $ 3,940 $ 6,120 S Budgeted cost of direct materials purchases Luther, Inc. Direct Labor Budget For the Year Ended December 31 3,990 2||$ 3,180 2 $ 12,200 2 7,980||$ 6,360 $ 24,400 First Second Third Fourth Question Reference For the Year Ended December 31 Fourth Quarter Total 700 0.50 2.150 0.50 First Second Third Quarter Quarter Quarter Budgeted kits to be produced 350 450 650 0.50 Direct labor hours per unit 0.50 0.50 Direct labor hours needed for production 175.00 225.00 325.00 S 25$ 25 $ 25$ Direct labor cost per hour $ 4,375||$ 5,625 $ 8,125 $ Budgeted direct labor cost Luther, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third 350.00 25$ 1,075.00 25 8,750 $ 26,875 Fourth Fourth Quarter Total For the Year Ended December 31 First Second Third Quarter Quarter Quarter Budgeted kits to be produced 350 450 650 VOH cost per kit 0.80 $ 0.80 $ 80 $ Budgeted VOH 280.00 $ 360.00 $ 520.00 $ 170.00 Budgeted FOH 170.00 170.00 S 450.00 $ 530.00 $ 690.00 $ Budgeted manufacturing overhead costs 700 0.80$ 2,150 0.80 $ un 560.00 $ 170.00 1,720.00 680.00 730.00 $ 2,400,00 175.00 225.00 325.00 350.00 1.075.00 Direct labor hours Budgeted manufacturing overhead costs Que 2.400.00 2.22
