Preston, Inc. manufactures model airplane kits and projects production at 300, 620, 250, and 700 kits for the next four quarters i (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 First Second Third Fourth Quarter Quarter Quarter Quarter Total 300 620 250 700 1,870 Budgeted kits to be produced 5 5 LO 5 5 Direct materials (ounces) per kit Direct materials needed for production Plus Desired direct materials in ending inventory 1,500 3,100 1,250 3,500 9,350 310 125 350 270 270 3 225 Total direct materials needed 1,600 3.770 9,620 1,810 930 310 125 350 930 Less Direct materials in beginning inventory 880 2.915 1.475 3.420 8,690 Budgeted purchases of direct materials 1 $ 1 $ $ Direct materials cost per ounce 880 $ 2,915$ 1 475 $ 3.420 al 8.690 Budgeted cost of direct materials purchases Part 3 of 3 Points: 0.67 of 1 Save Preston, Inc. manufactures model airplane kits and projects production at 300, 620, 250, and 700 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 Direct materials cost per ounce $ $ 1 $ $ 1 $ Budgeted cost of direct materials purchases $ 880 $ 2,915 $ 1,475 $ 3,420 $ 8,690 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.) Preston, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 300 620 250 700 1,870 Direct labor hours per unit 0.75 0.75 0.75 0.75 0.75 Direct labor hours needed for production 225.00 465.00 187 50 525 00 1,402.50 $ 40 $ 40 $ 40 Direct labor cost per hour 40 $ $ 40 $ 9,000 $ 18.600 $ P 7,500 $ 56,100 Budgeted direct labor cost 21,000 $ Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, X.XX. Abbreviations used: VOH = variable manufacturing overhead, FOH = fixed manufacturing overhead.) Preston, Inc. , manufactures model airplane kits and projects production at 300, 620, 250, and 700 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 Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, XXX. Abbreviations used VOH = vanable manufacturing overhead, FOH = fixed manufacturing overhead.) Preston, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Help me solve this Etext pages Calculator Clear all Check answer AMEL e many anufact X More info Direct materials are five ounces of plastic per kit and the plastic costs $1 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 930 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Preston 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 $40 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.30 per kit, and fixed overhead is $150 per quarter. per kit VOH FOH I manufa Print Done or hours manufacturing overhead costs mined overhead allocation rate