Trevor, Inc. manufactures model airplane kits and projects production at 500, 570, 300, and 450 kits for the next four quarters.

  Trevor, Inc. manufactures model  airplane kits and projects production at 500, 570, 300, and 450 kits for  the next four quarters. Direct materials are $10 per kit. Indirect  materials are considered insignificant and are not included in the  budgeting process. Beginning Raw Materials Inventory is $200 and the  company desires to end each quarter with 30% of the materials needed for  the next quarter's production. Trevor desires a balance of $200 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 $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 $160 per quarter. Prepare Trevor'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.