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		55,000		$	250
Heavy coil		35,000			350

• Raw-material prices and inventory levels:

Raw Material	Expected Inventories, January 1, 20x0				Desired Inventories, December 31, 20x0				Anticipated Purchase Price
Sheet metal		33,000	lb.			37,000	lb.		$	14
Copper wire		30,000	lb.			33,000	lb.			7
Platform		5,500	units			6,500	units			3

• Use of raw material:

	Amount Used per Unit
Raw Material	Light Coil				Heavy Coil
Sheet metal		4	lb.			5	lb.
Copper wire		2	lb.			3	lb.
Platform						1	unit

• Direct-labor requirements and rates:

Product	Hours per Unit				Rate per Hour
Light coil		4			$	10
Heavy coil		6				15

• Finished-goods inventories (in units):

Product	Expected January 1, 20x0				Desired December 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	$	0.50	per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection	$	6.00	per coil produced (either type)
Shipping	$	2.00	per coil shipped (either type)
General production overhead	$	4.00	per direct-labor hour

Problem 9-39 Part 1

Required: 1. Prepare the sales budget (in dollars) for 20x0.

Problem 9-39 Part 2

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

Problem 9-39 Part 3

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

Problem 9-39 Part 4

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 2 decimal places.)

7.Required: 1. Prepare a revised operating budget for the fourth quarter for Toronto Business Associates that Richard Howell will present to corporate management. 2. Identify the circumstance under which an organization would prepare a revised operating budget.

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 $ 0 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 0 0 0 Total requirements Purchase requirements (units) Problem 9-39 Part 4 4. Prepare the raw material purchases budget (in dollars) for 20x0. Raw Material Purchases Budget for 20x0 Raw Material Anticipated Required (units) Purchase Price Total Raw Material Sheet metal Copper wire Platforms Total $ 0 Problem 9-39 Part 5 5. Prepare the direct-labor budget (in dollars) for 20x0. Direct-Labor Budget for 20x0 Projected Production (units) Unit Hours per Total Hours Rate Total Cost Light coils Heavy coils Total $ 0 Problem 9-39 Part 6 6. Prepare the production-overhead budget (in dollars) for 20x0. (Round "Cost Driver Rate" to 2 decimal places.) Rate Budgeted Cost Production Overhead Budget for 20x0 Cost Driver Cost Driver Quantity Purchasing and material handling Ib. Depreciation, utilities, and inspection coils Shipping coils General production overhead Total production overhead hr. $ 0