Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 26 closures on hand on May 1, 22 closures on May 31, and 22 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $1.00 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $11 per hour. Additional information:

• Selling costs are expected to be 9 percent of sales.
• Fixed administrative expenses per month total $1,100.

Required: 1. 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.)

Additional information:

• Selling costs are expected to be 9 percent of sales.
• Fixed administrative expenses per month total $1,100.

Budgeted Total Sales: May $7,700 | June $5,040

Budgeted Production Units: May 520 | June 380

Budgeted Cost of Closures Purchaced: May $774 | June $570

Budgeted Manufacturing Overhead: May $1,420 | June $1,280

Budgeted Direct Labor Cost: May $1,716 | June $1,254

MFG Cost Per Unit: $9

Budgeted Cost of Goods Sold: May $4,950 | June $3,240

Required: Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $1.20.) (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