Preston, Inc, manufactures model airplane kits and projects production at 450, 420, 250, and 800 kits for the next four quarters. (Click the icon to view the manufacturing information.) Prepare Preston'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 Preston's direct materials budget Preston, Inc. Direct Materials Budget For the Year Ended December 31 More Info First Second Third Fourth Direct materials are 3 ounces of plastic per kit and the plastic costs S4 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 900 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Preston desires a balance of 230 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. Manufacturing overhead is allocated using direct labor hours as the alocation base. Variable overhead is $0.40 per kit, and fixed overhead is $130 per quarter Quarter Quarter Quarter Quarter Total Direct materials (ourices) per kit Direct materials needed for production Plus: Total direct materials needed Print Done Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases