Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 300, 280, 352, 312, and 380 respectively. Each unit requires 3 direct labor hours and Galactics hourly labor rate is $15 per hour. The companys variable overhead is $4.00 per unit produced and its fixed overhead is $5,500 per month. Use the information presented to complete the requirements. The drone toy includes 2 LED lights, which cost $15 each.

Required:

1. Determine Galactic's budgeted manufacturing cost per drone. (Note: assume that fixed overhead per unit is $17.75.)

2. Prepare Galactic's budgeted cost of goods sold for January and February.