Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 580, 560, 632, 592, and 660 respectively. Each unit requires 3 direct labor hours and Galactics hourly labor rate is $29 per hour. The companys variable overhead is $18 per unit produced and its fixed overhead is $6,900 per month. Use the information presented to complete the requirements. The drone toy includes 4 LED lights, which cost $15 each.

Required:

1. Determine Galactic's budgeted manufacturing cost per drone. (Note: assume that fixed overhead per unit is $24.75.)

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