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Condor Corporation manufactures two different types of coils used in electric motors. In the fall of the current year, the controller compiled the following data.
Condor Corporation manufactures two different types of coils used in electric motors. In the fall of the current year, the controller compiled the following data. |
Sales forecast for 20x3 (all units to be shipped in 20x3): |
Product | Units | Price | |||
Light coil | 55,000 | $ | 250 | ||
Heavy coil | 35,000 | 350 | |||
Raw-material prices and inventory levels: |
Raw Material | Expected Inventories January 1, 20x3 | Desired Inventories, December 31, 20x3 | Anticipated Purchase Price | ||||||
Sheet metal | 33,000 | lb. | 37,000 | lb. | $ | 14 | |||
Copper wire | 30,000 | lb. | 33,000 | lb. | 7 | ||||
Platform | 5,500 | units | 6,500 | units | 3 | ||||
Use of raw material: |
Amount Used per Unit | ||||||
Raw Material | Light Coil | Heavy Coil | ||||
Sheet metal | 4 | lb. | 5 | lb. | ||
Copper wire | 2 | lb. | 3 | lb. | ||
Platform | 1 | unit | ||||
Direct-labor requirements and rates: |
Product | Hours per Unit | Rate per Hour | ||||
Light coil | 4 | $ | 10 | |||
Heavy coil | 6 | 15 | ||||
Finished-goods inventories (in units): |
Product | Expected January 1, 20x3 | Desired December 31, 20x3 | ||||
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 | $ | 0.50 | per pound of sheet metal and copper wire purchased | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation, utilities, and inspection | $ | 6.00 | per coil produced (either type) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shipping | $ | 2.00 | per coil shipped (either type) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General production overhead | $ | 4.00 | per direct-labor hour | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepare the raw material purchases budget (in quantities) for 20x3.
Prepare the raw material purchases budget (in dollars) for 20x3.
Prepare the direct-labor budget (in dollars) for 20x3
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