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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 29 closures on hand on May 1, 17 closures on May 31, and 26 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $1.75 per unit produced.
Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June.
Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June.
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