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................ Units........... Price

Light coil.............. 60,000......... $120

Heavy coil............ 40,000...........$170

• Raw-material prices and inventory levels:

Raw Material............ Expected Inventories................., Desired Inventories,...................... Anticipated

January 1, 20x0....................... December 31, 20x0..................... Purchase Price

Sheet metal.................. 32,000lb. .............................. 36,000lb............................................. $8

Copper wire................. 29,000lb. ............................... 32,000lb............................................ $5

Platform...................... 6,000units.............................7,000units.............................................$3

• Use of raw material:

Amount Used per Unit

Raw Material................................ Light Coil.......................... Heavy Coil

Sheet metal..................................... 4lb....................................5lb.

Copper wire ............................................2lb....................................3lb.

Platform.................................................................................1unit

• Direct-labor requirements and rates:

Product....................... Hours per Unit ................................... Rate per Hour

Light coil ........................... 2.............................................................$15

Heavy coil .......................... 3...........................................................$ 20

• Finished-goods inventories (in units):

Product ................................Expected January.................................... Desired December

1, 20x0 .........................................................31, 20x0

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 $0.25per pound of sheet metal and copper wire purchased

Depreciation, utilities, and inspection $4.00per coil produced (either type)

Shipping $1.00per coil shipped (either type)

General production overhead $3.00per direct-labor hour

..................................................................................................................................................

Required

1. Prepare a sales budget (in dollars) for 20x0

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

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

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

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

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