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need help Homer, Inc. manufactures model airplane kits and projocts production at 600,330,400, and 350 kits for the next four quarters 1. (Click the icon
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Homer, Inc. manufactures model airplane kits and projocts production at 600,330,400, and 350 kits for the next four quarters 1. (Click the icon to view the manufacturing information.) Prepare Homer's direct materials budget, direct labor budget, and manufacturing overhoad budget for the yeur. Round the direct labor hours needed for prodiaction, budgeted overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole furmber. More info Direct materials are two ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 940 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Homer desires a balance of 230 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 $0.25 per kit, and fixed overhead is $145 per quarter. Begin by preparing Homer's direct materials budget Step by Step Solution
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