Trevor, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Third Fourth Quarter Quarter Quarter Total Budgeted kits to be produced 550 620 300 800 2,270 5 5 5 5 5 Direct materials (ounces) per kit Direct materials needed for production 2,750 3,100 1,500 4,000 11,350 310 150 400 270 270 Plus: Desired direct materials in ending inventory Total direct materials needed 3,060 3,250 1,900 4,270 11,620 Less: Direct materials in beginning inventory 870 310 150 400 870 Budgeted purchases of direct materials 2,190 2,940 1,750 3,870 10,750 4 $ 4 $ 4 $ 4 $ 4 Direct materials cost per ounce 8,760 $ EA 11,760 $ 7,000 $ 15,480 $ 43,000 Budgeted cost of direct materials purchases Prepare the direct labor budget. (Enter any hours as a decimal to two places, X.XX, and round all other amounts to the nearest whole number.) Trevor, Inc. Direct Labor Budget For the Year Ended December 31 Direct labor hours needed for production Budgeted direct labor cost First Second Quarter Quarter Third Quarter Fourth Quarter Total Direct materials are five ounces of plastic per kit and the plastic costs $4 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 10% of the materials needed for the next quarter's production. Trevor 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 $45 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.60 per kit, and fixed overhead is $145 per quarter