PROBLEM SETB Problem 20-1B Manufacturing: Preparing production and manufacturing budgets NSA Company produces baseball hats. Each bat requires 3 pounds of aluminum alloy, Management pre- dicts that 8,000 bats and 15,000 pounds of aluminum alloy will be in inventory on March 31 of the current year and that 250,000 bats will be sold during this year's second quarter. Bats sell for $80 cach. Management wants to end the second quarter with 6,000 finished bats and 12,000 pounds of aluminum alloy in inventory. Aluminum alloy can be purchased for $4 per pound. Each bat requires 0.5 hours of direct labor at $18 per hour. Variable overhead is annlied at the rate of $12 per direct labor hour. The com pany budgets fixed overhead of $1,776,000 for the quarter. Required Check (1) Units manuf. 248.000 1. Prepare the second quarter production budget for bats. 2. Prepare the second-quarter direct materials (aluminum alloy) budget; include the dollar cost of purchases [continued on next page] 813 Chapter 20 Master Budgets and Performance Planning 4. Prepare the Prepare the direct labor budget for the second quarter. Frepare the factory overhead budget for the second quarter