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 54,000 $ 240 Heavy coil 34,000 340 Raw-material prices and inventory levels: Raw Material Expected Inventories, January 1, 20x0 Desired Inventories, December 31, 20x0 Anticipated Purchase Price Sheet metal 32,000 lb. 36,000 lb. $ 16 Copper wire 29,000 lb. 32,000 lb. 10 Platform 5,400 units 6,400 units 6 Use of raw material: Amount Used per Unit Raw Material Light Coil Heavy Coil Sheet metal 3 lb. 4 lb. Copper wire 1 lb. 2 lb. Platform 2 unit Direct-labor requirements and rates: Product Hours per Unit Rate per Hour Light coil 3 $ 15 Heavy coil 5 20 Finished-goods inventories (in units): Product Expected January 1, 20x0 Desired December 31, 20x0 Light coil 19,000 24,000 Heavy coil 7,500 8,500 Production overhead: Overhead Cost Item Activity-Based Budget Rate Purchasing and material handling $ 0.40 per pound of sheet metal and copper wire purchased Depreciation, utilities, and inspection $ 9.00 per coil produced (either type) Shipping $ 1.00 per coil shipped (either type) General production overhead $ 7.00 per direct-labor hour

1. Prepare the raw material purchases budget (in quantities) for 20x0 3 columns (sheet metal, copper wire, & platform) The rows: Light coils Heavy coils Production requirements Add: desired inventories Dec 31, 20x0 Total requirements Less: expected inventories, Jan 1 20x0 Purchase requirements (units)

2. Prepare the raw material purchases budget (in dollars) for 20x0 3 columns: raw material required (units), anticipated purchase price, total The rows: Sheet metal Copper wire Platforms

3. Prepare the direct labor budget (in dollars) for 20x0 The columns: projected production (units), hours per unit, total hours, rate, total cost The rows: Light coils Heavy coils