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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 $1.50 each. Shadee wants to have 33 closures on hand on May 1, 22 closures on May 31, and 23 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 $12 per hour.
Additional information:
Selling costs are expected to be 12 percent of sales.
Fixed administrative expenses per month total $1,500.
Complete Shadee's budgeted income statement for the months of May and June. (Note: Assume that fixed overhead per unit is $6.00.) (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
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