Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data. Sales forecast for 20x0 (all units to be shipped in 20x0): Product Units Price Light coil 60,000 $120 Heavy coil 40,000 170 Raw material prices and inventory levels Raw Material Expected Inventory January 1, 20x0 Desired Inventory December 31, 20x0 Anticipated purchase price Sheet metal 32,000 lb 36,000 lb $8 Copper metal 29,000 lb 32,000 lb 5 Platforms 6,000 units 7,000 units 3 Use of raw materials Amount used per unit Raw material Light coil Heavy coil Sheet metal 4 lb. 5 lb. Copper wire 2 lb. 3 lb. Platforms 1 unit Direct labor requirements and rates Product Hours per unit Rate per hour Light coil 2 15 Heavy coil 3 20 Finish goods inventory in units Product Expected January 1, 20x0 Desire December 31, 20x0 Light coil 20,000 25,000 Heavy coil 8,000 9,000 Production overhead Overhead cost item Activity-based budget rate Purchasing and material handling $25 per pound of sheet metal and copper wire purchased Depreciation, utilities, and inspection $4 per coil produced either type Shipping $1 per coil shipped either type General production overhead $3 per direct labor hour Required 1. Raw-material purchases budget (in dollars). 2. Direct-labor budget (in dollars). 3 Production-overhead budget (in dollars)"
Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, Erica Becker, the controller, compiled the following data.
- Sales
forecast for 20x0 (all units to be shipped in 20x0):
|
Product |
Units |
Price |
|
Light coil |
60,000 |
$120 |
|
Heavy coil |
40,000 |
170 |
- Raw material prices and inventory levels
|
Raw Material |
Expected Inventory January 1, 20x0 |
Desired Inventory December 31, 20x0 |
Anticipated purchase price |
|
Sheet metal |
32,000 lb |
36,000 lb |
$8 |
|
Copper metal |
29,000 lb |
32,000 lb |
5 |
|
Platforms |
6,000 units |
7,000 units |
3 |
- Use of raw materials
Amount used per unit
|
Raw material |
Light coil |
Heavy coil |
|
Sheet metal |
4 lb. |
5 lb. |
|
Copper wire |
2 lb. |
3 lb. |
|
Platforms |
|
1 unit |
- Direct labor requirements and rates
|
Product |
Hours per unit |
Rate per hour |
|
Light coil |
2 |
15 |
|
Heavy coil |
3 |
20 |
- Finish goods inventory in units
|
Product |
Expected January 1, 20x0 |
Desire December 31, 20x0 |
|
Light coil |
20,000 |
25,000 |
|
Heavy coil |
8,000 |
9,000 |
- Production overhead
|
Overhead cost item |
Activity-based budget rate |
|
Purchasing and material handling |
$25 per pound of sheet metal and copper wire purchased |
|
|
$4 per coil produced either type |
|
Shipping |
$1 per coil shipped either type |
|
General production overhead |
$3 per direct labor hour |
Required
1. Raw-material purchases budget (in dollars).
2. Direct-labor budget (in dollars).
3 Production-overhead budget (in dollars)"
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