PanoraMI produces small drones. The company's forecasted sales units for January, February, March, April and May are as follows: 560, 540, 612, 572, and 640 respectively. The company's finished goods inventory policy is 30% of next month sales. Each drone includes 3 LED lights, which cost $15 each. Each drone unit requires 3 direct labor hours. The company's hourly labor rate is $28 per hour. The companys variable overhead is $17 per unit produced. The fixed overhead is $6,800 per month. Use the information presented to complete the requirements.

Required: 1. Determine PanoraMI's budgeted manufacturing cost per drone. (Note: assume that fixed overhead per unit is $24.25.)

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