Question
Each visor requires a total of $4.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost
Each visor requires a total of $4.50 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 27 closures on hand on May 1, 20 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.80.) (Round your answer to 2 decimal places.) Compute the Shadees budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)
Additionally, Shadees fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour.
Additional information:
Selling costs are expected to be 11 percent of sales.
Fixed administrative expenses per month total $1,300.
Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)
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