Problem 9-39 Sales, Production, and Purchases Budgets; Activity-Based Overhead Budget (LO 9-3, 9-4, 9-5, 9-6) [The following information applies to the questions displayed below.] 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): Product Light coil Heavy coil Units 60,000 40,000 Price $ 300 400 . Raw-material prices and inventory levels: Raw Material Sheet metal Copper wire Platform Expected Inventories, January 1, 20x0 38,000 lb. 35,000 lb. 6,000 units Desired Inventories, December 31, 20x0 42,000 lb. 38,000 lb. 7,000 units Anticipated Purchase Price $ 13 7 3 Use of raw material: Raw Material Sheet metal Copper wire Platform Amount Used per Unit Light Coil Heavy Coil 3 lb. 4 lb. 1 lb. 2 lb. 2 unit Direct-labor requirements and rates: Product Light coil Heavy coil Hours per Unit 3 5 Rate per Hour $ 10 15 Finished-goods inventories (in units): Product Light coil Heavy coil Expected January 1, 20x0 25,000 6,500 Desired December 31, 20x0 30,000 7,500 . Production overhead: Overhead Cost Item Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead Activity-Based Budget Rate $0.40 per pound of sheet metal and copper wire purchased $9.00 per coil produced (either type) $1.00 per coil shipped (either type) $7.00 per direct-labor hour Problem 9-39 Part 1 Required: 1. Prepare the sales budget (in dollars) for 20x0. Sales Budget for 20x0 Total Light coils Heavy coils Projected sales Problem 9-39 Part 2 2. Prepare the production budget (in units) for 20x0. Production Budget (in units) for 20x0 Light Coils Heavy Coils Projected sales Total requirements Production required (units) Problem 9-39 Part 3 3. Prepare the raw material purchases budget (in quantities) for 20x0. Raw Material Purchases Budget (in Quantities) for 20x0 Raw Material Sheet Metal Copper Wire Platform Light coils Heavy coils Production requirements Total requirements Purchase requirements (units) Problem 9-39 Part 4 4. Prepare the raw material purchases budget (in dollars) for 20x0. Total Raw Material Purchases Budget for 20x0 Raw Material Raw Material Anticipated Required (units) Purchase Price Sheet metal Copper wire Platforms Total 5. Prepare the direct-labor budget (in dollars) for 20xO. Direct-Labor Budget for 20x0 Projected Hours per Total Hours Production (units) Unit Rate Total Cost Light coils Heavy coils Total Problem 9-39 Part 6 6. Prepare the production-overhead budget (in dollars) for 20x0. (Round "Cost Driver Rate" to 2 decimal places.) Budgeted Cost Production Overhead Budget for 20x0 Cost Driver Cost Driver Quantity Rate Purchasing and material handling Ib. Depreciation, utilities, and inspection coils Shipping coils General production overhead hr. Total production overhead
