Vista Electronics, Inc., manufactures two different types of coils used in electric motors. In the fall of the current year, EricaBecker, the controller, compiled the following data.Sales forecast for 20x0 (all units to be shipped in 20x0):ProductUnitsPriceLight coilНeavy coil52,00032,000$ 220320• Raw-material prices and inventory levels:Expected Inventories,January 1, 20x030,000 lb.27,000 lb.5,200 unitsDesired Inventories,December 31, 20x034,000 lb.30,000 lb.6,200 unitsAnticipatedPurchase PriceRaw MaterialSheet metal$ 14Copper wirePlatform4• Use of raw material:Light Coil5 lb.3 lb.Amount Used per UnitНeavy Coil6 lb.4 lb.2 unitRaw MaterialSheet metalCopper wirePlatform• Direct-labor requirements and rates:ProductLight coilНeavy coilHours per Unit5Rate per Hour$ 10157Finished-goods inventories (in units):ExpectedJanuary 1, 20x017,0009,500DesiredDecember 31, 20x022,00010,500ProductLight coilНeavy coil Finished-goods inventories (in units):ExpectedJanuary 1, 20x017,0009,500DesiredDecember 31, 20x022,00010,500ProductLight coilНeavy coil• Production overhead:Overhead Cost ItemActivity-Based Budget RatePurchasing and material handlingDepreciation, utilities, and inspectionShippingGeneral production overhead$0.80 per pound of sheet metal and copper wire purchased$7.00 per coil produced (either type)$1.00 per coil shipped (either type)$5.00 per direct-labor hourProblem 9-39 Part 55. Prepare the direct-labor budget (in dollars) for 20x0.Direct-Labor Budget for 20x0Hours perProjectedProduction (units)Total HoursRateTotal CostUnitLight coilsНeavy coilsTotal$

The budget is prepared by the management on the basis of past experience. On the basis of the…

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): Units 52,000 32,000 Price $ 220 320 Product Light coil Heavy coil • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 30,000 lb. 27,000 lb. 5,200 units Desired Inventories, December 31, 20x0 34,000 lb. 30,000 lb. 6,200 units Anticipated Purchase Price $ 14 Raw Material Sheet metal Copper wire Platform 8 • Use of raw material: Light Coil 5 lb. 3 lb. Amount Used per Unit Нeavy Coil 6 lb. 4 lb. 2 unit Raw Material Sheet metal Copper wire Platform • Direct-labor requirements and rates: Product Hours per Unit Light coil Нeavy coil Rate per Hour $ 10 15 7

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): Units 52,000 32,000 Price $ 220 320 Product Light coil Heavy coil • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 30,000 lb. 27,000 lb. 5,200 units Desired Inventories, December 31, 20x0 34,000 lb. 30,000 lb. 6,200 units Anticipated Purchase Price $ 14 Raw Material Sheet metal Copper wire Platform 8 • Use of raw material: Light Coil 5 lb. 3 lb. Amount Used per Unit Нeavy Coil 6 lb. 4 lb. 2 unit Raw Material Sheet metal Copper wire Platform • Direct-labor requirements and rates: Product Hours per Unit Light coil Нeavy coil Rate per Hour $ 10 15 7

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter8: Tactical Decision-making And Relevant Analysis

Section: Chapter Questions

Problem 41E

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