Wilber, Inc. manufactures model airplane kits and projects production at $250,530,650,$ and $650$ kits for the next four quarters. Direct materials are $$7$ per kit. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is $$300,$ and the company desires to end each quarter with $20\%$ of the materials needed for the next quarter's production. Wilber desires a balance of $$300$ in Raw Materials Inventory at the end of the fourth quarter. Each kit requires $0\mathrm{.}25$ hours of direct labor at an average cost of $$30$ per hou Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $$0\mathrm{.}40$ per kit, and fixed overhead is $$165$ per quarter. Prepare Wilber'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 Wilber's direct materials budget.

Wilber, Inc.

Direct Materials Budget

Direct materials cost per unit

Direct materials needed for production

Plus:

Total direct materials needed

Less:

Budgeted purchases of direct materials