Luther, inc, manulactures model airplane kits and projects production at 200,120,300, and 550 kits for the next four quarlers. (3) (Click the icon to view the manulacharing infoctiation.) Prepare Luther's direct materials budget, direct labor budgel, and manulacturing overhend budget far the year. Round the direct labor hours needed for production, budgeted overhend costs, an predetermined overthend allocation rame to two decimal places. Round other smounts to the nearest wholo mumber. phoin two mnonarina Lutther's direct materials budget. More info Direct materials are seven ounces of plastic per kit and the plastic costs $4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 950 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 290 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 $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.90 per kit, and fixed overhead is $145 per quarter