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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 $2$ pounds

of carbon fiber. Management reports that $6,100$ snowboards and $7,100$ pounds of

carbon fiber are in inventory at the beginning of the third quarter, and that $161,000$

snowboards are budgeted to be sold during the third quarter. Management wants to

end the third quarter with $4,600$ snowboards and $5,100$ pounds of carbon fiber in

inventory. Carbon fiber costs $$10$ per pound. Each snowboard requires $0\mathrm{.}5$ hour of

direct labor at $$15$ per hour. Variable overhead is budgeted at the rate of $$5$ per direct

labor hour. The company budgets fixed overhead of $$1,793,000$ for the quarter.

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

Prepare the direct labor budget for the third quarter.