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Problem $20-1$A $($Algo$)$ Manufacturing: Preparing production, materials, labor, and overhead budgets LO

P$1$

$[$The following information applies to the questions displayed below.$]$

Black Diamond Company produces snowboards. Each snowboard requires $3$ pounds of carbon fiber. Management reports

that $6,300$ snowboards and $7,300$ pounds of carbon fiber are in inventory at the beginning of the third quarter, and that

$163,000$ snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with

$4,800$ snowboards and $5,300$ pounds of carbon fiber in inventory. Carbon fiber costs $$12$ per pound. Each snowboard

requires $0\mathrm{.}4$ hour of direct labor at $$17$ per hour. Variable overhead is budgeted at the rate of $$7$ per direct labor hour. The

company budgets fixed overhead of $$1,795,000$ for the quarter.

Problem $20-1$A $($Algo$)$ Part $3$

Prepare the direct labor budget for the third quarter.