Oliver, Inc. manufactures model airplane kits and projects production at 350, 120, 200, and 450 kits for the next four quarters. (Click the icon to view the manufacturing information.) Prepare Oliver'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 Oliver's direct materials budget. Oliver, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Third Fourth 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 More info Direct materials are 3 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 880 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Oliver 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 $45 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $140 per quarter