Galactic Incorporated manufactures flying drone toys. Sales units for January, February, March, April, and May were 320, 300, 372, 332, and 400 respectively. Each unit requires 3 direct labor hours and Galactics hourly labor rate is $16 per hour. The companys variable overhead is $5 per unit produced and its fixed overhead is $5,600 per month. Use the information presented to complete the requirements. The drone toy includes 3 LED lights, which cost $15 each.

Required:

Determine Galactic's budgeted manufacturing cost per drone.

(Note: Assume that fixed overhead per unit is $18.25.)

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