Vista Electronics, Incorporated, 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	63,000	$ 330
Heavy coil	43,000	430

Raw-material prices and inventory levels:

Raw Material	Expected Inventories, January 1, 20x0	Desired Inventories, December 31, 20x0	Anticipated Purchase Price
Sheet metal	41,000	Pound	45,000	Pound	$ 16
Copper wire	38,000	Pound	41,000	Pound	10
Platform	6,300	units	7,300	units	6

Use of raw material:

Raw Material	Amount Used per Unit
Light Coil	Heavy Coil
Sheet metal	4	Pound	5	Pound
Copper wire	2	Pound	3	Pound
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	28,000	33,000
Heavy coil	8,000	9,000

Production overhead:

Overhead Cost Item	Activity-Based Budget Rate
Purchasing and material handling	$ 0.70	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