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Preston, inc. manufacturns model arplane kits and projects production at 250,330,200, and 800 kits for...

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Accounting

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Preston, inc. manufacturns model arplane kits and projects production at 250,330,200, and 800 kits for the next four quarters. (i) (Click the icon to view the manidacturing information.) Prepare Preston's direct materiais budget, direct tabor budget, and manufacturing ovechead budget for the year. Round the direct labor hours needed for producton, budgoted overhead costa, and predetermined overhead allocation rale to two decimal places. Round other amounts to the nearest whole numbec: Bogin by preparing Preston's direct materials budget. More info Direct materials are 7 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 860 ounces, and the company desires to end each quarter with 10% of the materials needed for the next quarter's production. Preston desires a balance of 280 ounces in Raw Materials Inventory at the end of the fourth quarter. Each kit requires 0.50 hours of direct labor at an average cost of $25 per hour. Manufacturing overhead is allocated using direct labor hours as the allocation base. Variable overhead is $0.75 per kit, and fixed overhead is $155 per quarter

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