Black diamond company produces snow skis each key requires 2 pounds of carbon fiber the companies management for predicts that 5200 skis and 6200 pounds of carbon fiber will be in inventory on June 30 of the current year and at 152,000 skis will be sold during the next third-quarter a set of two skis sells for $320 management wants to in the third quarter with 3700 skis and 4200 pounds of carbon fiber in inventory carbon fiber can be purchased for $17 per pound each key requires 0.4 hours of direct labor at $22 per hour verbal overhead is applied at the rate of $10 per direct labor our the company budget is fixed overhead of 1,784,000 for the quarter

The first part it says prepare the third quarter production budget for skis number to prepare the third-quarter direct materials the carbon fiber budget includes a dollar cost of purchases third part says prepare the direct labor budget for the third quarter and the forces prepare the factory overhead budget for the third