1 Sales budget: Light coils Heavy coils Projected sales Units 60 000 40 000 Price Total $130 $ 7 800 000 $190 7600 000 $15.400 000 2 Production budget (in units): Projected sales Add Desired inventories, 31 Total requirements Deduct Expected inventories, 1 Production required (units) Light coils 60 000 25 000 85 000 20 000 65 000 Heavy coils 40 000 9 000 49 000 8 000 41 000 3 Direct material purchases budget (in quantities): Platforms Light coils (65 000 units projected to be Heavy coils (41 000 units projected to be Production requirements Add Desired inventories, 31 December Total requirements Deduct Expected inventories, 1 January Purchase requirements (units) Raw material Sheet metal Copper wire 260 000 130 000 205 000 123 000 465 000 253 000 36 000 _32.000 501 000 285 000 32 000 29 000 469 000 256 000 41 000 41 000 7.000 48 000 6 000 42 000 4 Direct material purchases budget (in dollars): Raw material required Anticipated Raw material (units) purchase price Sheet metal 469 000 $8 Copper wire 256 000 5 Platform 42 000 3 Total n Total S 3752 000 1 280 000 126 000 $5 158 000 Total hours Rate Total cost 5 Direct labour budget: Projected Hours production (units) per unit Light coils 65 000 2 Heavy coils 41 000 3 Total 130 123 $30 $3 900 0000 40 4 920 0000 $8 820 0000 6 Manufacturing overhead budget: Activity Rate per Driver Total Budgeted activity Materials handling: - sheet metal, wire $0.50 - platforms $0.10 per kg of raw material per purchased platform 725 000 kg* 42 000 units $ 362 500 4200 Machine related $1.50 per machine hour 300 000 MHR $ 450 000 Shipping $2.00 per coils shipped $ 200 000 100 000 coils** General $1.20 per direct labour hour 253 000 DLH $ 303 600 SL320.300 Total manufacturing overhead * 469000+256 000 = 725 000 kg ** 60 000 + 40 000 = 100 000 coils sold 1 Sales budget: Light coils Heavy coils Projected sales Units 60 000 40 000 Price Total $130 $ 7 800 000 $190 7600 000 $15.400 000 2 Production budget (in units): Projected sales Add Desired inventories, 31 Total requirements Deduct Expected inventories, 1 Production required (units) Light coils 60 000 25 000 85 000 20 000 65 000 Heavy coils 40 000 9 000 49 000 8 000 41 000 3 Direct material purchases budget (in quantities): Platforms Light coils (65 000 units projected to be Heavy coils (41 000 units projected to be Production requirements Add Desired inventories, 31 December Total requirements Deduct Expected inventories, 1 January Purchase requirements (units) Raw material Sheet metal Copper wire 260 000 130 000 205 000 123 000 465 000 253 000 36 000 _32.000 501 000 285 000 32 000 29 000 469 000 256 000 41 000 41 000 7.000 48 000 6 000 42 000 4 Direct material purchases budget (in dollars): Raw material required Anticipated Raw material (units) purchase price Sheet metal 469 000 $8 Copper wire 256 000 5 Platform 42 000 3 Total n Total S 3752 000 1 280 000 126 000 $5 158 000 Total hours Rate Total cost 5 Direct labour budget: Projected Hours production (units) per unit Light coils 65 000 2 Heavy coils 41 000 3 Total 130 123 $30 $3 900 0000 40 4 920 0000 $8 820 0000 6 Manufacturing overhead budget: Activity Rate per Driver Total Budgeted activity Materials handling: - sheet metal, wire $0.50 - platforms $0.10 per kg of raw material per purchased platform 725 000 kg* 42 000 units $ 362 500 4200 Machine related $1.50 per machine hour 300 000 MHR $ 450 000 Shipping $2.00 per coils shipped $ 200 000 100 000 coils** General $1.20 per direct labour hour 253 000 DLH $ 303 600 SL320.300 Total manufacturing overhead * 469000+256 000 = 725 000 kg ** 60 000 + 40 000 = 100 000 coils sold