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Oliver, Inc. manufactures model airplane kits. Direct materials are 6 ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materials are

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Oliver, Inc. manufactures model airplane kits. Direct materials are 6 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. Each kit requires 0.50 hours of direct labor at an average cost of $22 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: (Click the icon to view the budgets.) Oliver projects sales of 200, 300, 500, and 650 kits for the next four quarters. Oliver has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, $X.XX.) Total projected manufacturing cost per kit Oliver, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Third Fourth Quarter Quarter Total Budgeted kits to be produced 400 600 550 330 6 1,880 6 6 6 6 Direct materials (ounces) per kit Direct materials needed for production Plus: Desired direct materials in ending inventory 2,400 1,980 360 3,600 330 3,300 210 11,280 210 198 Total direct materials needed 3,930 2,598 940 2,340 198 3,510 330 11,490 940 360 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 1,658 10,550 2,142 5||$ 3,570 5||$ 3,180 5$ $ Direct materials cost per ounce 5||$ $ 8,290 $ 10,710||$ 17,850 $ 15,900 $ 52,750 Budgeted cost of direct materials purchases oma Ina Oliver, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 550 1,880 400 0.50 330 0.50 600 0.50 Direct labor hours per unit 0.50 0.50 Direct labor hours needed for production 165.00 300.00 940.00 200.00 22||$ 275.00 22||$ $ 22||$ Direct labor cost per hour 22||$ 22 $ 4,400||$ 3,630||$ Budgeted direct labor cost 6,600||$ 6,050||$ 20,680 Oliver, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 400 330 600 550 1,880 0.60 VOH cost per kit $ 0.60 || $ 0.60 || $ 0.60||$ 0.60||$ Budgeted VOH $ 240.00 || $ 198.00 || $ 360.00 || $ 330.00 || $ 1,128.00 680.00 170.00 170.00 170.00 170.00 Budgeted FOH $ 410.00 $ 368.00 || $ 530.00 || $ 500.00 || $ 1,808.00 Budgeted manufacturing overhead costs Direct labor hours 200.00 165.00 300.00 275.00 940.00 Budgeted manufacturing overhead costs $ 1,808.00 1.92 $ Predetermined overhead allocation rate

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