Oliver, Inc. manufactures model airplane kits. Direct materials are 7 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 0.75 hours of direct labor at an average cost of $50 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 400, 100, 500, and 400 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. C Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, $XXX.) Total projected manufacturing cost per kit 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 550 270 600 750 2,170 7 7 7 7 7 Direct materials (ounces) per kit Direct materials needed for production 3,850 1,890 4,200 5,250 15,190 378 Plus: Desired direct materials in ending inventory 40 1,050 280 280 Total direct materials needed 4,228 2,730 5,250 5,530 15,470 890 378 840 1,050 890 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 3,338 2,352 4,410 4,480 14,580 5 $ 5 $ 5 $ 5 $ Direct materials cost per ounce 16,690 $ 11,760 S 22,050 $ 22,400 $ 72,900 Budgeted cost of direct materials purchases Oliver, Inc. dis Budgeted cost of direct materials purchases $ 16,690 $ 11,760 $ 22,050 $ 22,400 $ 72,900 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour Budgeted direct labor cost Oliver, Inc. Direct Labor Budget For the Year Ended December 311 First Second Quarter Quarter Third Quarter Fourth Quarter Total 550 270 600 750 2,170 0.75 0.75 0.75 0.75 0.75 412.50 202.50 I 450.00 562.50 1,627.50 50 $ 50 $ 50 S 50 $ 50 $ 20,625 $ 10,125 $ 22,500 $ 28,125 $ 81,375 Oliver, Inc. Manufacturing Overhead Budget For the Year Ended December 31 Olive mode Oliver, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Deter Budgeted kits to be produced 550 270 600 750 2.170 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 VOH cost per kit Budgeted VOH 495.00 $ 243.00 540.00 $ 675.00 $ 1,953.00 130.00 130.00 130.00 130.00 520.00 Budgeted FOH $ 625.00 $ 373.00 $ 670.00 $ 805.00 $ 2.473.00 Total Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 412.50 202.50 450.00 562.50 1,627.50 $ 2,473.00 $ 1.52 Print Done