P9.37 Soles forecast (appendix) Sales, production and purchases budgets; activity-based overhead: manufacturer George Ltd manufactures and sells two different types of coils used in electric motors. In September, Jessica Martin, the management accountant, compiled the following data for the upcoming annual budget Use of direct material or L09.11 Price Units Product Light coil Heavy coil 5130 GOOOO 40 000 $190 Direct material Sheci Copper wire Platform Light coll 4 kilograms 2 kilograms Amount used per unit Heavy coll 5 kilogrames 3 kilograms I unit Required: Prepare the following budgets 1. sales budget (in dollars) 2. production budget in units) 3. direct material purchases budget (in quantities) 4, direct material purchases budget (in dollars) 5. direct labour budget fin dollars) 6. manufacturing overhead budget (in dollars) Row material prices and Inventory levels Anticipated purchase Desired Inventories 31 December price Raw material Sheet metal Copper wire Platform $8 SS $3 Expected Inventories 1 January 32 000 kilograms 29 000 kilograms 6 X 36 000 kilograms 32 000 kilograms 7 7000 units Direct labour requirements and rotes: Hours per unit Product Leoil Heavy Coil Rate per hour $30 540 Manufacturing overhead: Activity Cast per unit of activity driver Material handling Sheet metal and copper wire $0.50 per kg of raw material purchased Platforms 50.10 per unit purchased Machine related 51 50 per machine hour Shipping $2.00 per coll shipped General manufacturing overhead $1.20 per direct labor hour Twiamual machine hours de 100 000 for lights and 200 000 for heavy Finished goods inventories (in units) Product Expected 1 January 20 000 000 Desired 31 December 15 000 9000 Lighi coll Heavy cuil