Required Information [The following information applies to the questions display

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Required Information [The following information applies to the questions displayed below Vista Electronics, Inc. manufactures two different types of colls used In electric motors. In the fall of the current year, Erica Becker, the controller, complled the following data. Sales forecast for 20x0 (all units to be shipped In 20x0): Product Light coil Heavy coil Units Price 58,8e8 28e 38,8e8 380 Raw-material prices and Inventory levels: Desired Inventories, December 31, 28x8 32,808 1lb 28,808 1b Anticipated Purchase Price Expected Inventories, Raw Material Sheet metal Copper wire Platform January 1, 28x8 28,88e lb 25, 8 lb $ 17 5,8ae units 6,808 units Use of raw materlal: . Amount Used per Unit Raw Material Sheet metal Copper wire Platform Heavy Coil 4 1b 2 1b 2 unit Light Coil 3 1b 1 1b . DIrect-labor requirements and rates: ProductHours per Unit Light coil Heavy coil Rate per Hour s 18 15 .Finished-goods Inventories (In units): Expected January Desired December 31 Product Light coil Heavy coil 1, 28xe 15,808 8,58e 28x9 28,8e8 9,580 Production overhead Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead $8.68 per pound of sheet metal and copper wire purchased $5.88 per coil produced (either type) $1.80 per coil shipped (either type) $3.80 per direct-labor hour

Explanation / Answer

Budgeted Production units Sales units Ending Beginiing Production = Sales+Ending-Beg. Lightt Coil 50000 20000 15000 55000 Heavy Coil 30000 9500 8500 31000 Material purchase units Sheet Metal: Production Required per unit Requirement Copper wire: Production Required per unit Requirement Light coil 55000 3 165000 Light Coil 55000 1 55000 Heavy Coil 31000 4 124000 Heavy Coil 31000 2 62000 Total Requirement 289000 Total Requirement 117000 Add: Ending Inventory 32000 28000 Lless: Beginning inventory 28000 25000 Material Purchase 293000 120000 Labour hours: Light coil (55000 units @ 3) 165000 Heavy (31000 units @ 5) 155000 Total Labour hours 320,000 LABOUR BUDGET Production Hours per unit Total hours Rate Budgeted Cost Light Coil 55000 3 165000 10 1,650,000 Heavy Coil 31000 5 155000 15 2325000 Total Labour cost 3,975,000 Production Overheads Budget Cost Cost driver Budgeted Driver Rate Cost Purchase and material handling 413000 0.6 247800 Depreciation, Utilities 86000 5 430,000 Shipping 80000 1 80,000 General Production Overheads 320000 3 960,000 Total 1,717,800

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