please give proper explanation and formula clarification.
Homework: Chapter M:5 Homework Question 3, EM5-25 (sim... Part 2 of 2 HW Score: 17.65%, 1.24 of 7 points Points: 0.35 of 1 O Save Wilber, Inc. manufactures model airplane kits. Direct materials are five ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Each requires 0.50 hours of direct labor at an average cost of $30 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.) Wilber projects sales of 200, 500, 450, and 100 kits for the next four quarters. Wilber 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, $X.XX.) Direct materials cost per kit 10.00 Direct labor cost per kit 15.00 Manufacturing overhead cost per kit 0.90 25.90 Total projected manufacturing cost per kit Prepare a cost of goods sold budget for the year. (Complete all input fields. Enter "O" for zero balances.) Wilber, Inc Cost of Goods Sold Budget For the Year Ended December 31 First Second Third Quarter Quarter Quarter Fourth Quarter Total Kits produced and sold Total budgeted cost of goods sold Wilber, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 400 680 500 350 1,930 5 5 5 5 5 Direct materials (ounces) per kit Direct materials needed for production 2,000 3,400 2,500 1,750 9,650 210 680 500 350 210 Plus: Desired direct materials in ending inventory Total direct materials needed 2,680 3,900 2,850 1,960 9,860 860 680 500 350 860 Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce 1,820 2,350 9,000 3,220 2||$ 1,610 2||$ 2 || $ 2||$ 2 $ 3,640||$ 6,440||$ 4,700||$ 3,220||$ 18,000 Budgeted cost of direct materials purchases Wilber, Inc. Direct Labor Budget For the Year Ended December 31 First Second Quarter Quarter Third Fourth Quarter Quarter Total Budgeted kits to be produced 400 680 500 350 1,930 0.50 0.50 0.50 0.50 0.50 Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 200.00 340.00 250.00 175.00 965.00 30||$ 30 $ 30||$ 30$ 30 $ 6,000 $ 10,200 || $ 7,500||$ 5,250 $ 28,950 Budgeted direct labor cost Direct labor hours needed for production 200.00 340.00 250.00 175.00 965.00 30 || $ Direct labor cost per hour 30 || $ 30 || $ 30 $ 30 6,000 $ 10,200 $ 7,500 $ 5,250 $ 28,950 Budgeted direct labor cost Wilber, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 400 680 500 350 1,930 0.60 | $ 0.60 $ 0.60||$ 0.60||$ 0.60 VOH cost per kit Budgeted VOH 240.00||$ 408.00 $ 300.00 || $ 210.00 || $ 1,158.00 145.00 145.00 145.00 145.00 580.00 Budgeted FOH 385.00 $ 553.00 $ 445.00 || $ 355.00 || $ 1,738.00 Budgeted manufacturing overhead costs 200.00 340.00 250.00 175.00 965.00 Direct labor hours Budgeted manufacturing overhead costs $ 1,738.00 $ 1.80 Predetermined overhead allocation rate
