! Required information [The following information applies to the questions displayed below.] 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 Light coil 52,000 Heavy coil 32,000 • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 30,000 lb. 27,000 lb. 5,200 units O Raw Material Sheet metal Copper wire Platform • Use of raw material: . Raw Material Sheet metal Copper wire Platform Light coils Heavy coils Total Price $ 220 320 Amount Used per Unit Heavy Coil 6 lb. 4 lb. 2 unit • Direct-labor requirements and rates: Hours per Unit. Product Light coil Heavy coil 5 7 Product Light coil Heavy coil Light Coil 5 lb. 3 lb. • Finished-goods inventories (in units): • Production overhead: Expected Desired January 1, 20x0 December 31, 20x0 17,000 9,500 Rate per Hour $ 10 15 Overhead Cost Item Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead 5. Prepare the direct-labor budget (in dollars) for 20x0. Projected Production (units) Desired Inventories, December 31, 20x0 34,000 lb. 30,000 lb. 6,200 units 22,000 10,500 Direct-Labor Budget for 20x0 Hours per Unit Total Hours Activity-Based Budget Rate $0.80 per pound of sheet metal and copper wire purchased $7.00 per coil produced (either type) $1.00 per coil shipped (either type) $5.00 per direct-labor hour Rate Anticipated Purchase Price $ 14 8 4 Total Cost
! Required information [The following information applies to the questions displayed below.] 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 Light coil 52,000 Heavy coil 32,000 • Raw-material prices and inventory levels: Expected Inventories, January 1, 20x0 30,000 lb. 27,000 lb. 5,200 units O Raw Material Sheet metal Copper wire Platform • Use of raw material: . Raw Material Sheet metal Copper wire Platform Light coils Heavy coils Total Price $ 220 320 Amount Used per Unit Heavy Coil 6 lb. 4 lb. 2 unit • Direct-labor requirements and rates: Hours per Unit. Product Light coil Heavy coil 5 7 Product Light coil Heavy coil Light Coil 5 lb. 3 lb. • Finished-goods inventories (in units): • Production overhead: Expected Desired January 1, 20x0 December 31, 20x0 17,000 9,500 Rate per Hour $ 10 15 Overhead Cost Item Purchasing and material handling Depreciation, utilities, and inspection Shipping General production overhead 5. Prepare the direct-labor budget (in dollars) for 20x0. Projected Production (units) Desired Inventories, December 31, 20x0 34,000 lb. 30,000 lb. 6,200 units 22,000 10,500 Direct-Labor Budget for 20x0 Hours per Unit Total Hours Activity-Based Budget Rate $0.80 per pound of sheet metal and copper wire purchased $7.00 per coil produced (either type) $1.00 per coil shipped (either type) $5.00 per direct-labor hour Rate Anticipated Purchase Price $ 14 8 4 Total Cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Munabhai
![!
Required information
[The following information applies to the questions displayed below.]
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
Light coil 52,000
Heavy coil 32,000
• Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
30,000 lb.
27,000 lb.
5,200 units
O Raw Material
Sheet metal
Copper wire
Platform
• Use of raw material:
.
Raw Material
Sheet metal
Copper wire
Platform
Light coils
Heavy coils
Total
Price
$ 220
320
Amount Used per Unit
Heavy Coil
6 lb.
• Direct-labor requirements and rates:
Hours per Unit.
Product
Light coil
Heavy coil
5
7
Product
Light coil
Heavy coil
Light Coil
5 lb.
3 lb.
• Finished-goods inventories (in units):
• Production overhead:
4 lb.
2 unit
Expected
Desired
January 1, 20x0 December 31, 20x0
17,000
9,500
Rate per Hour
$ 10
15
Projected
Production (units)
Overhead Cost Item
Purchasing and material handling
Depreciation, utilities, and inspection
Shipping
General production overhead
5. Prepare the direct-labor budget (in dollars) for 20x0.
Desired Inventories,
December 31, 20x0
34,000 lb.
30,000 lb.
6,200 units
22,000
10,500
Direct-Labor Budget for 20x0
Hours per
Unit
Total Hours
Activity-Based Budget Rate
$0.80 per pound of sheet metal and copper wire purchased
$7.00 per coil produced (either type)
Anticipated
Purchase Price
$ 14
8
4
$1.00 per coil shipped (either type)
$5.00 per direct-labor hour
Rate
Total Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6b4cfa66-3ca1-4a52-ab67-883b628d80d6%2Fccf49559-942f-4ddc-ad5a-2fa086be191c%2Fpz29jbr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
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
Light coil 52,000
Heavy coil 32,000
• Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
30,000 lb.
27,000 lb.
5,200 units
O Raw Material
Sheet metal
Copper wire
Platform
• Use of raw material:
.
Raw Material
Sheet metal
Copper wire
Platform
Light coils
Heavy coils
Total
Price
$ 220
320
Amount Used per Unit
Heavy Coil
6 lb.
• Direct-labor requirements and rates:
Hours per Unit.
Product
Light coil
Heavy coil
5
7
Product
Light coil
Heavy coil
Light Coil
5 lb.
3 lb.
• Finished-goods inventories (in units):
• Production overhead:
4 lb.
2 unit
Expected
Desired
January 1, 20x0 December 31, 20x0
17,000
9,500
Rate per Hour
$ 10
15
Projected
Production (units)
Overhead Cost Item
Purchasing and material handling
Depreciation, utilities, and inspection
Shipping
General production overhead
5. Prepare the direct-labor budget (in dollars) for 20x0.
Desired Inventories,
December 31, 20x0
34,000 lb.
30,000 lb.
6,200 units
22,000
10,500
Direct-Labor Budget for 20x0
Hours per
Unit
Total Hours
Activity-Based Budget Rate
$0.80 per pound of sheet metal and copper wire purchased
$7.00 per coil produced (either type)
Anticipated
Purchase Price
$ 14
8
4
$1.00 per coil shipped (either type)
$5.00 per direct-labor hour
Rate
Total Cost
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