Required information [The following information applies to the questions display

Question

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 UnitsPrice Light 51,000 $210 coil Heavy 31,000 310 coil Raw-material prices and inventory levels Desired Inventories, December 31, 20x0 Expected Anticipated Purchase Price Raw Material January 1, 20x0 Sheet metal Copper wire Platform Inventories, 29,000 lb. 26,000 1b. 33,000 lb $18 29,000 lb 5,100 units 6,100 units . Use of raw material: Amount Used per Unit Heavy Coil 5 lb Light Raw Material Sheet metal Copper wire Platform Coil 4 lb. 2 lb. 3 lb. 1 unit Direct-labor requirements and rates Hours per Unit Rate per Product Light Heavy Hour $15 20 coil

Explanation / Answer

Prepare direct labour budget :

Projected production (units) Hours per unit Total hours Rate Total cost Light Coils 56000 4 224000 15 3360000 Heavy Coils 32000 6 192000 20 3840000 Total 7200000

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