Question
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 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced.
Required:
1.Determine Shadee's budgeted cost of closures purchased for May and June.(Round your answers to 2 decimal places.)
2.Determine Shadee's budget manufacturing overhead for May and June.(Do not round your intermediate calculations. Round your answers to 2 decimal places.)
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