solve

Preston, lnc manufactures model airplane kits and projects production at 600, 120, 250; and 400 kits for the next four quarters. Direct materials are S7 per kit. Indirect materials are considered insignificant and are not included in the budgeting process Beginning Raw Materials Inventory is $700: 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 S700 in Raw Materials Inventory at the end of the fourth quarter Each kit requires 0.75 hours of direct labor at an average cost of $35 per hour Manufactunng overhead is allocated using direct labor hours as the allocation base Variable overhead IS SO. 70 per kit, and fixed overhead is S125 per quarter. 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 predetermned overhead allocation rate to two decimal places. Round other amounts to the nearest whole number. irectMaterials Budge For the Year Ended December 31 First Quarter Second Quarter Third Quarter Fourth Quarter Total Direct materials cost per unit Direct materials needed for production Plus: Total direct materials needed Less: Budgeted purchases of direct materials