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Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 7,000 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. BLACK DIAMOND COMPANY Production Budget (in units) \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ BLACK DIAMOND COMPANY } \\ \hline \multicolumn{1}{|c|}{ Direct Materials Budget } \\ \hline Units to produce & & \\ \hline Materials required per unit (pounds) & 168,500 & units \\ \hline Materials needed for production (pounds) & & & \\ \hline Add: Desired ending materials inventory (pounds) & & \\ \hline Total materials required (pounds) & & \\ \hline Less: Beginning materials inventory (pounds) & & & \\ \hline Materials to purchase (pounds) & 8,000 & \\ \hline Materials cost per pound & & \\ \hline Cost of direct materials purchases & & \\ \hline \end{tabular} BLACK DIAMOND COMPANY Direct Labor Budget Third Quarter Units to produce Direct labor hours required per unit Direct labor hours needed Direct labor cost per hour Cost of direct labor BLACK DIAMOND COMPANY Factory Overhead Budget \begin{tabular}{|l|l|} \hline Direct labor hours needed & \\ \hline Variable overhead rate per direct labor hour \\ \hline Budgeted variable overhead \\ \hline Budgeted fixed overhead & \\ \hline Budgeted total factory overhead & \\ \hline \end{tabular}

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