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 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour.
Required:
1.Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.)(Round your answer to 2 decimal places.)
2.Determine Shadee's budgeted cost of goods sold for May and June.(Do not round your intermediate calculations. Use rounded cost per unit in intermediate calculations.)
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