5.1

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 32 closures on hand on May 1, 22 closures on May 31, and 22 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,500 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $12 per hour. Additional information:

Selling costs are expected to be 11 percent of sales.

Fixed administrative expenses per month total $1,400.

Required: Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

	May	June
Budgeted Selling and Administrative Expenses

6.2

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 32 closures on hand on May 1, 22 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $12 per hour. Additional information:

Selling costs are expected to be 11 percent of sales.

Fixed administrative expenses per month total $1,400.

Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.80.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

SHADEE CORP.
Budgeted Income Statement
	May	June
Budgeted Gross Margin
Budgeted Net Operating Income