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):

€¢ Raw-material prices and inventory levels:

€¢ Use of raw material:

€¢ Direct-labor requirements and rates:

€¢ Finished-goods inventories (in units):

€¢ Manufacturing overhead:
Overhead Cost Item Activity Based Budget Rate
Purchasing and material handling ...... $.25 per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection .... $4.00 per coil produced (either type)
Shipping ................................................. $1.00 per coil shipped (either type)
General manufacturing overhead .......... $3.00 per direct-labor hour
Required:
Prepare the following budgets for 20x0.
1. Sales budget (in dollars).
2. Production budget (in units).
3. Raw-material purchases budget (in quantities).
4. Raw-material purchases budget (in dollars).
5. Direct-labor budget (in dollars).
6. Manufacturing-overhead budget (in dollars).

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Product Light coil Heavy coil . Units 60,000 .40,000 Price S12) 170 Raw Material Sheet metal As Platforms Expected Inventories, January 1, 20x0 32,000 lb. 29,000 lb. Desired Inventories, December 31, 20x0 36,000 lb. 32,000 lb. 7,000 units Anticipated Purchase Price $8 ty 6,000 units Amount Used per Unit Raw Material Light Coil Sheet metal. Copper wire. Platforms Heavy Coil 5 b. 3 b. 1 unit 4 lb 2 lb. Product Light coil Heavy coil Hours per Unit Rate per $15 20 Hour Product Light coil Heavy coil Expected January 1, 20x0 20,000 8,000 Desired December 31, 20x0 25,000 9,000