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 Light coil Heavy coil Units 58,000 38,000 Price $ 280 380
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Prepare the production-
![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):
Units
58,000
38,000
●
●
Product
Light coil
Heavy coil
Raw-material prices and inventory levels:
Expected Inventories,
January 1, 20x0
36,000 Pound
33,000 Pound
5,800 units
Ra Material
Sheet metal
Copper wire
Platform
Use of raw material:
Price
Product
Light coil
Heavy coil
Finished-goods
Product
Light coil
Heavy coil
$ 280
380
Raw Material
Sheet metal
Copper wire
Platform
Direct-labor requirements and rates:
Amount Used per Unit
Light Coil
4 Pound
2 Pound
Hours per Unit
3
5
inventories (in units):
Desired Inventories,
December 31, 20x0
40,000 Pound
36,000 Pound
6,800 units
20x0
23,000
9,500
Heavy Coil
5 Pound
3 Pound
2 unit
Rate per Hour
$ 15
20
Expected January 1, Desired December 31,
20x0
28,000
10,500
Anticipated
Purchase Price
$15
8
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2F9a278844-a43a-4c4f-a3b7-6c7fa5eaf7b9%2Fsnqkoar_processed.png&w=3840&q=75)
![Finished-goods inventories (in units):
Expected January 1, Desired December 31,
20x0
20x0
23,000
9,500
Product
Light coil
Heavy coil
Production overhead:
Overhead Cost Item
Purchasing and material handling
Depreciation, utilities, and inspection
Shipping
General production overhead
28,000
10,500
Activity-Based Budget Rate
$ 0.80
$ 7.00
$ 2.00
$ 5.00
per pound of sheet metal and copper
wire purchased
per coil produced (either type)
per coil shipped (either type)
per direct-labor hour](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb87f551d-3fc5-4766-9e3a-b14ac4833b45%2F9a278844-a43a-4c4f-a3b7-6c7fa5eaf7b9%2Fcsysuop_processed.png&w=3840&q=75)
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