More info Direct materials are six ounces of plastic per kit and the plastic costs $5 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 20% of the materials needed for the next quarter's production. Carlton desires a balance of 270 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 $130 per quarter. Carhon, Inc manutoctures model airplane kits and projects production at 550,450,200, and 450 kits for the noxd four quartors. C. (Clok the icon fo view the manulacturing information) Prepare Cartton's direct materials budget, direct labor budget. and manufacturing overhead budget for the year Round tho direct labor hours needed for production budgeted overhead costs, and predetemined overhead allocation rato to two decimal places Round other amounts io the nearest wholo number