Part 1 As the Controller of Lynbrook, Inc., the CFO recently asked you to prepare several budgets the company plans to use for planning the next quarter's activity. Lynbrook produces pickleball paddles. Each paddle requires 2 pounds of carbon fiber. The company's management predicts that 5,000 paddles and 6,000 pounds of carbon fiber will be in inventory on March 31 of the current year and that 150,000 paddles will be sold during the next (second) quarter. A set of two paddles sells for $75. Management wants to end the second quarter with 3,500 paddles and 4,000 pounds of carbon fiber in inventory. Carbon fiber can be purchased for $15 per pound. Each paddle requires 0.5 hours of direct labor at $20 per hour. Variable overhead is applied at the rate of $8 per direct labor hour. The company budgets fixed overhead of $1,782,000 for the quarter. Required: 1. Prepare the second quarter production budget for paddles. 2. Prepare the second quarter direct materials (carbon fiber) budget; include the dollar cost of purchases. 3. Prepare the direct labor budget for the second quarter. 4. Prepare the factory overhead budget for the second quarter.