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Austin, Inc. manufactures model airplane kits and projects production at 200, 220, 650, and 700 kits for the next four quarters. (Click the icon to view the manufacturing information) Prepare Austin's direct materials budget, direct labor budget, and manufacturing overhead budget for the year. Round the direct labor hours needed for production, budgetec overhead costs, and predetermined overhead allocation rate to two decimal places. Round other amounts to the nearest whole number Third Fourth Begin by preparing Austin's direct materials budget. Austin, Inc. Direct Materials Budget For the Year Ended December 31 First Second Quarter Quarter Budgeted kits to be produced 200 220 Direct materials (ounces) per kit Direct materials needed for production Plus Total direct materials needed Quarter 650 Quarter 700 Total 1.770 Less Budgeted purchases of direct materials Direct materials cost per ounce Budgeted cost of direct materials purchases Direct materials are 5 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. Beginning Raw Materials Inventory is 900 ounces, and the company desires to end each quarter with 30% of the materials needed for the next quarter's production. Austin desires a balance of 240 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.25 hours of direct labor at an average cost of $15 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 $150 per quarter. Print Dane Cameron, Inc, manufactures model alrplane kits. Direct materials are 4 ounces of plastic per kit and the plastic costs $4 per ounce Indirect materials are considered insignificant and are not included in the budgeting process. Each kit requires 0.50 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.) Cameron projects sales of 500, 100,700, and 400 kits for the next four quarters Cameron 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, SX XX.) Direct materials cost per kit Direct labor cost per kit Manufacturing overhead cost per kit Total projected manufacturing cost per kit Cameron, Inc. Direct Materials Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 550 270 150 650 1,620 4 4 4 4 4 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 1080 6,480 2 200 324 600 780 2,600 280 180 280 2.524 1,260 324 1,380 180 2.880 780 6,760 870 870 Less Direct materials in beginning inventory Budgeted purchases of direct materials 1.654 5,890 936 41 $ 1200 4 $ 2.100 4 $ $ 4 S Direct materials cost per ounce S 6,616||$ 3.744||$ 4.800||$ 8,400||$ 23,560 Budgeted cost of direct materials purchases For the Year Ended December 31 First Second Third Quarter Quarter Quarter Fourth Quarter Total 550 0.50 Budgeted kits to be produced Direct labor hours per unit Direct labor hours needed for production Direct labor cost per hour 270 0.50 150 0.50 650 0.50 1,620 0.50 275,00 135.00 40||$ 75.00 40||$ 40|| 325.00 40 $ 810.00 40 Budgeted direct labor cost A 11,000 $ 5,400 $ 3,000 $ 13,000 $ 32,400 Cameron, Inc. Manufacturing Overhead Budget For the Year Ended December 31 First Second Third Fourth Quarter Quarter Quarter Quarter Total 550 270 150 650 GA 0.80||$ 1,620 0.80 0.80S 0.80$ 0.80$ Budgeted kits to be produced VOH cost per kit Budgeted VOH Budgeted FOH Budgeted manufacturing overhead costs $ 120.00 S 520.00$ 440.00 S 150.00 216.00 $ 150.00 1,296.00 600.00 150.00 150.00 s 590.00 S 366.00 $ 270.00 $ 670.00 $ 1,896.00 Direct labor hours 275.00 135.00 75.00 325.00 810.00 S Budgeted manufacturing overhead costs Predetermined overhead allocation rate 1,896.00 2.34 S

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