Prepare the direct labor budget. (Enter any hours as a decimal to two places, XXX, and round all other amounts to the nearest whole Oliver, Inc Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Direct labor hours needed for production Budgeted direct labor cost whole number Begin by preparing Oliver's direct materials budget 6 6 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 400 420 650 350 1 820 6 Derect materials (ounces) per kit 6 Directmaterials needed for production 2,400 2,520 3.900 2,100 10.920 Pus Desired direct materials in anding inventory 252 390 210 290 290 Total direct materials needed 2,652 2,910 4110 2,390 11.210 Less Direct materials in beginning inventory 9:40 252 390 210 940 Budgeted purchases of direct materiale 1,712 2.658 3.720 2.180 10270 $ 28 2 2 $ Direct materials cost per ounce 2. 3 $ 3.4243 Budgeted cost of direct materials purchases 5.316||$ 7.4403 4360$ 20.540 Prepare the direct labor budget (Enter any hours as a decimal to two places, XXX and round all other amounts to the nearest whole number) Oliver, Inc. $ heE22-24 (similar to) Question Help Oiver, Inc manufactures model airplane kits and projects production at 400, 420,650, and 350 kits for the next four quarters Click the icon to view the manufacturing information) Prepare Oliver'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 Oliver's direct materials budget 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 400 420 650 350 1820 6 6 6 6 6 Direct materials (ounces) per il Direct materials needed for producto 2.400 2520 3900 2,100 10.920 Plus 390 252 Desred direct materials in ending inventory 210 290 Total direct manals needed 2652 2910 4110 11.210 Less Direct materials in beginning inventory 940 -252 390 210 940 Budgeted purchases of direct materials 1.712 2658 2,180 10,270 25 2 Direct materials cost per ounce 213 2.424 7,440 53163 43601 20.540 Baigeted cost of direct materiale purchases Prepare the direct labor budget (Enw any hours as a decima to two places, XXX and round all other amounts to the nearest whide number) Olive, Ine Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 2.390 2.720 Direct lobor hours needed for production Budgeted direct labor cost For the Year Ended December 31 First Second Quarter Quarter Third Quarter Fourth Quarter Total i More Info Direct materials are 6 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 940 ounces, and the company desires to end each quarter with 10% of the materials needed for the ext quarter's production. Oliver desires a balance of 290 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 $25 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.70 per kit and fixed overhead is $175 per quarter. Print Done