Preston, Inc. manufactures model airplane kits and projects production at 150, 330, 600, and 800 kits...

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Preston, Inc. manufactures model airplane kits and projects production at 150, 330, 600, and 800 kits for the next four quarters. i (Click the icon to view the manufacturing information.) Prepare Preston'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 Preston'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 Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Ome solve this Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Et More info 150 4 600 396 996 Second Quarter 330 4 1320 720 2040 THE Third Quarter 600 4 2400 960 3360 Fourth Quarter 800 4 3200 210 3410 Direct materials are four ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 950 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Preston desires a balance of 210 ounces Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 hours of direct labor at an average cost of $20 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $145 per quarter. Total X 1880 4 7520 210 7730 [0 Clear all Check answer Preston, Inc. manufactures model airplane kits and projects production at 150, 330, 600, and 800 kits for the next four quarters. i (Click the icon to view the manufacturing information.) Prepare Preston'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 Preston'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 Less: Direct materials in beginning inventory Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Ome solve this Preston, Inc. Direct Materials Budget For the Year Ended December 31 First Quarter Et More info 150 4 600 396 996 Second Quarter 330 4 1320 720 2040 THE Third Quarter 600 4 2400 960 3360 Fourth Quarter 800 4 3200 210 3410 Direct materials are four ounces of plastic per kit and the plastic costs $3 per ounce. Indirect materials are considered insignificant and are not included in the budgeting process. Beginning Raw Materials Inventory is 950 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Preston desires a balance of 210 ounces Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 hours of direct labor at an average cost of $20 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.80 per kit, and fixed overhead is $145 per quarter. Total X 1880 4 7520 210 7730 [0 Clear all Check answer

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Calculation of Manufactured overhead budget predetermined overhead a... View the full answer