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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
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, 19 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour.
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