More into irect mater costs, and hours needed ble number = produced nces) per eded for pre ect material is needed erials in bed es of direct Direct materials are two ounces of plastic per kit and the plastic costs $3 per ounce Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 930 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Preston desires a balance of 240 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 $50 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.60 per kit, and fixed overhead is $170 per quarter st per ounce Print Done irect materi Preston, Inc manufactures model airplane kits and projects production at 600, 120, 650, and 750 kits for the next four quarters (Click the icon to view the manufacturing information) Prepare Preston'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 Preston's direct materials budget Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Budgeted its to be produced 600 120 Direct materials counces) per Dired materials needed for production Third Quarter Fourth Quarter Total 2.120 650 750 Udreis Preston, Inc manufactures model airplane kits and projects production at 600, 120, 650, and 750 kits for the next Click the icon to view the manufacturing information) Prepare Preston's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours ne budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole numbe WUR SOUTIET VUURICE w 600 120 650 750 2.120 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 Budgeted purchases of direct materials Direct materials cost per ounce