Requlred Information
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Black Diamond Company produces snowboards. Each snowboard requires pounds of carbon fiber. Management reports
that snowboards and pounds of carbon fiber are in inventory at the beginning of the third quarter, and that
snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with
snowboards and pounds of carbon fiber in Inventory. Carbon fiber costs $ per pound. Each snowboard
requires hour of direct labor at $ per hour. Variable overhead is budgeted at the rate of $ per direct labor hour.
The company budgets fixed overhead of $ for the quarter.
Prepare the direct labor budget for the third quarter.
Prepare the factory overhead budget for the third quarter.
