Oliver Inc. manufactures model airplane kits and projects production at 600, 420, 200, and 350 kits for the next four quarters.

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 Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 600 420 200 350 1570 Direct materials (ounces) per kit Direct materials needed for production Desired direct materials in ending inventory Plus: Total direct materials needed Direct materials in beginning inventory Less: Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours as a decimal to two places, XXX, and round all other amounts to the nearest whole number.) X More Info Direct materials are 2 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 870 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 280 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 $20 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.50 per kit, and fixed overhead is $125 per quarter. Print Done Prepare the direct labor budget. (Enter any hours as a decimal to two places, XXX, and round all other amounts too the nearest whole number.) Oliver, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct labor hours needed for production Budgeted direct labor cost Prepare the manufacturing overrhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead, FOH fixed manufacturing overhead.) Oliver, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Total Quarter Quarter Quarter Quarter VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate