predehemined overtead alocalion rato to two deciral places. Pround other amounts to the nearest whole nutber. Begin ty treparng Homers dreet matehais budost. More info Direct materials are four ounces of plastic per kit and the plastic costs $5 per ounce. Indirect materials are considered insignificant and are not included in the budgeting proces5. Beginning Raw Materials Imventory is 860 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Homer desires a balance of 290 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 hours of direct labor at an average cost of $35 per hour. Manufactaring overhead is allocated using direct labor hours as the allocabon base. Variable overhead is $0.80 per kit, and foxed overhead is $125 per quarter