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Paragraph Styles Luther, Inc. Luther, Inc manufactures model airplane kits Direct materials are S6 per kit Iriireztmaterls are consdered insinificantand are rd inclined in the budgetirg vocess Each kit requires J 10 hours of direct at an average cost of S55 pet is alk:cated using direct lab Direct Labor Budget tours as the base The company has prepared the folEwing bugets (Click the icon to view the For the Year Ended December 31 Luther proBts Saks ot 300.00.500. and kits per quarter has kits in Inventory the cost kit to manutture the 55 s 55 s rnc air"ne kts Prepue a cost sok budget the year Rmnd amouMs to tho decimal places Detemir* the cost kit 10 marut.:ture the mcdel irplane kits (Round answers to wo cecrnal places SXXX ) Oirt hbor cost kit Direct materels cost per it cost per Total Vojeded cost per kt Luther, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter 650 3575 s Second Quarter 50 co 55 s 2750 s Third Quarter 450 45 DO 2475 s Foum Quarter 55 s 3300 s Total 2,200 nooo 55 12 IOO udgeted kits to be produced irect materials cost per unit irect materials needed for roduction Desired direct materials in lus: ending inventory otal direct materials needed First Quarter 650 6 3,900 600 4,500 300 4,200 Second Quarter Third Quarter s s Direct materials in beginning ess: inventory udgeted purchases of direct s s s s 500 6 3,000 540 3,540 600 2,040 S s s 6 2,700 720 3420 540 21880 s s s Fourth Quarter 600 6 3,600 300 3,900 720 3,180 s s s Budgeted kits t be produced Direct hours per unit Direct labor hours for production Direct cost per hour Budgeted direct Zbor cost Total 2,200 6 13,200 300 13,500 300 13,200