Preston, Inc. manufactures model airplane kits and projects production at 600, 420, 350 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 First Second Quarter Quarter Fourth Third Quarter Quarter Total Direct materials (ounces) periot Direct materials needed for production Plus Total direct materials needed Less Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct matenals purchases Choose from any list or enter any number in the input fields and then continue to the next question 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 Second Third Fourth Quarter First Quarter Quarter Quarter Total Direct labor hours needed for production Budgeted direct labor cost budgeted overhead costs, and predetermined overedd allocato w Prepare the manufacturing overhead budget. (Enter all costs and hours as a decimal to two places, XXX. Abbreviations used: VOH = variable manufacturing om 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 Directiabor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate Manufacturina Overhead Rudcat - 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 process. Beginning Raw Materials Inventory is 870 ounces, and the company desires to end each quarter with 20% of the materials needed for the next quarter's production. Preston desires a balance of 210 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 $45 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 $130 per quarter. Print Done ate