Required information Problem 20-1A (Algo) Manufacturing: Preparing production, materials, labor, and overhead budgets LO P1 [The following information applies to the questions displayed below) Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 7000 snowboards and 8,000 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 170,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 5,500 snowboards and 6,000 pounds of carbon fiber in inventory. Carbon fiber costs $19 per pound Each snowboard requires 0.5 hour of direct labor at $24 per hour. Variable overhead is budgeted at the rate of $14 per direct labor hour. The company budgets fixed overhead of $1,802,000 for the quarter. Problem 20-1A (Algo) Part 2 . Prepare the direct materials budget for the third quarter 2. Prepare the direct materials budget for the third quarter. BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases