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Trevor, Inc. manufactures model airplane kits and projects production at 400,680,500, and 750 kits for the next four quarters. (Click the icon to view the manufacturing information.) Prepare Trevor'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 Trevor's direct materials budget. More info Direct materials are 7 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. Beginning Raw Materials Inventory is 920 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Trevor desires a balance of 270 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 $22 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.90 per kit, and fixed overhead is $160 per quarter. Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) Trevor, Inc. Direct Labor Budget For the Year Ended December 31 Direct labor hours needed for production Budgeted direct labor cost