The Grilton Tire Company manufactures racing tire for bicylces. Grilton is planning for the 2025 by developing a master budget by quarters. Data for Grilton needed to complete the requirements is listed below: (You will be completing the budgets for only the first quarter of 2025) 1. Gilton sells tires for $80 each. Sales are budgeted at 1,000 tires for the first quarter of 2025 and are expected to increase by 150 tires per quarter thereafter. 2. Finished goods inventory on December 31, 2024 consists of 300 tires at $31 each. 3. Desired ending Finished goods inventory is 20% of next quarter's sales. FIFO inventory costing method is used. 4. Raw materials inventory on December 31,2024 consists of 600 pounds of rubber used to manufacture the tires. 5. Direct material requirements are two pounds of rubber per tire. The cost of the rubber compound is $5 per pound. 6. Desired ending Raw materials inventory is 50% of the next quarter's direct materials needed for production. Indirect materials are insignificant and not considered for budgeting purposes 7. Each tire requires 0.50 hours of direct labor; direct labor costs average $16 per hour. 8. Variable manufacturing overhead is \$s per tire. 9. Fixed manufacturing overhead includes $4,500 per quarter in depreciation and $22,470 per quarter for other costs, such as utilities, insurance and property taxes 10. Manufacturing overhead is allocated based on direct labor hours. (Use the first quarter information to compute the one quarter predetermined manufacturing overhead rate since the annual information is not available) Requirement 6: Compute the budgeted manufacturing cost per tire for 2025 (using the first quarter only information) Requirement 7: Preapre the Cost of Goods Sold Budget for the first quarter of 2025 for Grilton (FIFO inventory is used)