#1 Condor Corporation manufactures two different types of coils used in electric motors.

In the
fall of the current year, the controller compiled the following data.

• Sales forecast for 20x3 (all units to be shipped in 20x3):

Product Units Price
Light coil 60,000 $240
Heavy coil 40,000 $340

• Raw-material prices and inventory levels:

Expected Inventories, Desired Inventories Anticipated
Raw Material January 1, 20x3 December 31, 20x3 Purchase Price
Sheet Metal 32,000 lbs 36,000 lbs $16
Copper Wire 29,000 lbs 32,000 lbs $10
Platform 6,000 units 7,000 units $6

• Use of raw material:

Amount Used per Unit
Raw Material Light Coil Heavy Coil
Sheet metal 4 lb. 5 lb.
Copper wire 2 lb. 3 lb.
Platform 1 unit

• Direct-labor requirements and rates:

Product Hours per Unit Rate per Hour
Light coil 4 $15
Heavy coil 6 $20

• Finished-goods inventories (in units):

Product Expected January 1, 20x3 Desired December 31, 20x3
Light coil 20,000 25,000
Heavy coil 8,000 9,000

• Production overhead:
Overhead Cost Item Activity-Based Budget Rate
Purchasing and material handling $.50 per pound of sheet metal and copper wire purchased
Depreciation, utilities, and inspection $8.00 per coil produced (either type)
Shipping $2.00 per coil shipped (either type)
General production overhead $6.00 per direct-labor hour

Required:
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. Production Overhead budget (in dollars)