y-Two Homework estion 4, E22-25 (similar to) Part 1 of 2 HW Score: 20%, 4 of 20 points Points: 0 of 4 Homer, Inc. manufactures model airplane kits. Direct materials are 2 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. Each kit requires 0.25 hours of direct labor at an average cost of $40 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. The company has prepared the following budgets: (Click the icon to view the budgets.) Save Homer projects sales of 300, 400, 600, and 300 kits for the next four quarters. Homer has no kits in beginning inventory. Determine the cost per kit to manufacture the model airplane kits. Prepare a cost of goods sold budget for the year. Round amounts to two decimal places. Determine the cost per kit to manufacture the model airplane kits. (Round your answers to two decimal places, $X.XX.) Total projected manufacturing cost per kit Reference Homer, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Second Third Fourth Quarter Quarter Quarter Total Budgeted kits to be produced 550 450 200 300 1,500 2 2 2 2 2 Direct materials (ounces) per kit Direct materials needed for production 1,100 900 400 600 3,000 180 80 120 290 290 Plus: Desired direct materials in ending inventory Total direct materials needed 1,280 980 520 890 3,290 860 180 80 120 860 Less: Direct materials in beginning inventory Budgeted purchases of direct materials 420 800 440 770 2,430 2 $ 2 $ 2 $ 2 $ 2 Direct materials cost per ounce 840||$ 1,600 $ 880 $ 1,540 $ 4,860 Budgeted cost of direct materials purchases Homer, Inc. Direct Labor Budget 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 Homer, Inc. Direct Labor Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 550 450 200 300 1,500 0.25 0.25 0.25 0.25 0.25 137.50 112.50 50.00 75.00 375.00 EA $ 40 $ 40||$ 40||$ 40||$ 40 $ 5,500||$ 4,500||$ 2,000||$ 3,000||$ 15,000 Homer, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total Budgeted kits to be produced 550 450 200 300 1,500 $ 0.30 $ VOH cost per kit 0.30||$ 0.30||$ 0.30||$ 0.30 Budgeted VOH $ 165.00||$ 135.00||$ 60.00||$ 90.00||$ 450.00 Budgeted FOH 135.00 135.00 135.00 135.00 540.00 $ 300.00 $ 270.00||$ 195.00 $ 225.00 $ 990.00 Budgeted manufacturing overhead costs Direct labor hours Budgeted manufacturing overhead costs Predetermined overhead allocation rate 137.50 112.50 50.00 75.00 375.00 990.00 $ 2.64