Problem 22-1B Manufacturing: Preparing production, materials, labor, and overhead budgets P1 NSA Company produces baseball bats. Each bat requires 3 pounds of aluminum alloy. Management reports that 8,000 bats and 15,000 pounds of aluminum alloy are in inventory at the beginning of the second quarter, and that 250,000 bats are budgeted to be sold during the second quarter. Management wants to end the second quarter with 6,000 finished bats and 12,000 pounds of aluminum alloy in inventory. Aluminum alloy costs $4 per pound. Each bat requires 0.5 hour of direct labor at $18 per hour. Variable overhead is budgeted at the rate of $12 per direct labor hour. The company budgets fixed overhead of $1,776,000 for the quarter. 6 Required 1. Prepare the production budget for the second quarter. Hint: Desired ending inventory units are given. Check (1) Units to produce, 248,000 2. Prepare the direct materials budget for the second quarter. 3. Prepare the direct labor budget for the second quarter. 4. Prepare the factory overhead budget for the second quarter. Page 845