Trevor Inc. manufactures model airplane kits and projects production at 150, 530, 300, and 750 kits for the next four quarters.

Manufacturing Information: Direct materials are 4 ounces of plastic per kit and the plastic costs $2 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 900 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. trevor desires a balance of 260 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires0.50hours of direct labor at an average cost of $30 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.25 per-kit, and fixed overhead is $150 per quarter.

Prepare Trevor '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 Trevor 's direct materials budget.

Trevor, Inc.
Direct Materials Budget
For the Year Ended December 31
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced
Direct materials (ounces) per kit
Direct materials needed for production
Plus:	Desired direct materials in ending inventory
Total direct materials needed
Less:	Direct materials in beginning inventory
Budgeted purchases of direct materials
Direct materials cost per ounce
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
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced
Direct labor hours per unit
Direct labor hours needed for production
Direct labor cost per hour
Budgeted direct labor cost

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.)

Trevor, Inc.
Manufacturing Overhead Budget
For the Year Ended December 31
		First	Second	Third	Fourth
		Quarter	Quarter	Quarter	Quarter	Total
Budgeted kits to be produced
VOH cost per kit
Budgeted VOH
Budgeted FOH
Budgeted manufacturing overhead costs
Direct labor hours
Budgeted manufacturing overhead costs
Predetermined overhead allocation rate