Pet Transport Company makes a pet carrier called Cat-allac. Each unit of Cat-allac requires 2 kilograms of plastic at a cost of $4.00 per kg, and uses 0.5 direct labor hours and 3 machine hours. Production line works are paid $13.00 per hour. The company has estimated total manufacturing overhead for the year to be $400,000 and allocates overhead on the basis of machine hours. Estimated machine hours total 80,000 for the period. The company records $5,000 in depreciation expense each month. Production peaks in November during the gift giving season. Pet Transport Company plans to produce the following units for the last four months of the year and January of the next year: September 1,300 October |(1,500 November 3,000 December 2,000 January 500 Desired ending inventory of the plastic used on the pet carriers is 25% of the next month's production needs. REQUIRED: 1. Create a monthly direct materials budget for the fourth quarter of the year (Oct, Nov, Dec) for plastic used on the pet carriers. At the bottom of the budget, indicate the total cost to purchase the tires. 2. Create a monthly direct labor budget for the fourth quarter of the year. 3. Calculate the predetermined overhead rate for manufacturing overhead. 4. Prepare a monthly manufacturing overhead budget for the fourth quarter of the year