Trevor, Inc. manufactures model airplanes kits and projects production at 600, 450, 400 and 800 kits for the next four quarters.

prepare Trevor's direct materials 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. 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