Oliver, Inc. manufactures model airplane kits and projects production at 500, 270, 350, and 700 kits for the next four quarters.

Prepare Oliver's direct materials budget, direct labor budget, and manufacturing overbead budget for the year. Round the direct labor hours needed for production, budgeted overhead costs, and predetermined overhead allocation rate for two decimal places.

One mature modelines and project production at 500, 270, 350, and 700 for the next Cho the view that too Precare Olvers and to be direct bergandang bugeto Roundedirected to production, but costs and producerea locations decimal place Roundner amounts the whole number - - X More info Direct materials are four 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 860 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Oliver 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 $35 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.30 per kit, and fixed overhead is $160 per quarter. Ullver, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct materials (ounces) per kit Direct materials needed for production Plus: Total direct materials needed Less Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases