PR 9-39 (Algo) Sales, Production, and Purchases Budgets; Activity-Based Overhead Budget (LO 9-3, 9-4, 9-5, 9-6)

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Vista Electronics, Incorporated, 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):

ProductUnitsPriceLight coil68,000$ 380Heavy coil48,000480

Raw-material prices and inventory levels:

Raw MaterialExpected Inventories, January 1, 20x0Desired Inventories, December 31, 20x0Anticipated Purchase PriceSheet metal46,000Pound50,000Pound$ 14Copper wire43,000Pound46,000Pound9Platform6,800units7,800units5

Use of raw material:

Raw MaterialAmount Used per UnitLight CoilHeavy CoilSheet metal4Pound5PoundCopper wire2Pound3PoundPlatform 2unit

Direct-labor requirements and rates:

ProductHours per UnitRate per HourLight coil3$ 15Heavy coil520

Finished-goods inventories (in units):

ProductExpected January 1, 20x0Desired December 31, 20x0Light coil33,00038,000Heavy coil10,50011,500

Production overhead:

Overhead Cost ItemActivity-Based Budget RatePurchasing and material handling$ 0.60per pound of sheet metal and copper wire purchasedDepreciation, utilities, and inspection$ 5.00per coil produced (either type)Shipping$ 1.00per coil shipped (either type)General production overhead$ 3.00per direct-labor hour

PR 9-39 (Algo) Part 3: Prepare the raw material purchases budget

3. Prepare the raw material purchases budget (in quantities) for 20x0.

- Production overhead: PR 9-39 (Algo) Part 5: Prepare the direct-labor budget... 5. Prepare the direct-labor budget (in dollars) for 200. PR 9-39 (Algo) Part 3: Prepare the raw material purchases budget... 3. Prepare the raw material purchases budget (in quantities) for 200. PR 9-39 (Algo) Part 4: Prepare the raw material purchases budget... 4. Prepare the raw material purchases budget (in dollars) for 200. PR 9-39 (Algo) Part 6: Prepare the production-overhead budget... 6. Prepare the production-overhead budget (in dollars) for 200. Note: Round "Cost Driver Rate" to 2 decimal places