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

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.

need help Questions 3-6 only

• Sales forecast for 20x0 (all units to be shipped in 20x0):

Sales Budget for 20x0

Total

1. Answer

Light coils

$15,390,000selected answer correct

Heavy coils

13,690,000selected answer correct

Projected sales

$29,080,000

2) Prepare the production budget (in units) for 20x0.

Answered

Production Budget (in units) for 20x0

Light Coils

Heavy Coils

Projected sales

57,000selected answer correct

37,000selected answer correct

Add: Desired inventories, December 31, 20x0selected answer correct

27,000selected answer correct

10,000selected answer correct

Total requirements

84,000selected answer correct

47,000selected answer correct

Less: Expected inventories, January 1, 20x0selected answer correct

22,000selected answer correct

9,000selected answer correct

Production required (units)

62,000selected answer correct

38,000selected answer correct

need help 3-6

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

Add: Desired inventories, December 31, 20x0

Total requirements

Less: Expected inventories, January 1, 20x0

Purchase requirements (units)

4. Prepare the raw material purchases budget (in dollars) for 20x0.

Raw Material Purchases Budget for 20x0

Raw Material/ Raw Material Required (units)/ Anticipated Purchase Price/ Total

Sheet metal

Copper wire

Platforms

Total

5. Prepare the direct-labor budget (in dollars) for 20x0.

Direct-Labor Budget for 20x0

Projected Production (units)/ Hours per Unit/ Total Hours/ Rate/ Total Cost

Light coils

Heavy coils

Total

6) Prepare the production-overhead budget (in dollars) for 20x0.(Round "Cost Driver Rate" to 2 decimal places.)

Production Overhead Budget for 20x0

Cost Driver Quantity/ Cost Driver Rate/ Budgeted Cost

Purchasing and material handling lb.

Depreciation, utilities, and inspection coils

Shipping coils

General production overhead hr

Total production overhead