Oliver, Inc. manufactures model airplane kits and projects production at $300,530,350,$ and $500$ kits for the next four quarters.

$($i$)($Click the icon to view the manufacturing information.$)$

decimal places. Round other amounts to the nearest whole number.

Begin by preparing Oliver's direct materials budget.

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Direct materials are two 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 $30\%$ of the materials needed for the

next quarter's production. Oliver desires a balance of $250$ ounces in Raw Materials

Inventory at the end of the fourth quarter. Each kit requires $0\mathrm{.}50$ 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\mathrm{.}80$ per kit,

and fixed overhead is $$130$ per quarter.