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Required information Skip to question [The following information applies to the questions displayed below.] Shadee Corp. expects to sell 630 sun visors in May and

Required information

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[The following information applies to the questions displayed below.]

Shadee Corp. expects to sell 630 sun visors in May and 430 in June. Each visor sells for $19. Shadees beginning and ending finished goods inventories for May are 65 and 50 units, respectively. Ending finished goods inventory for June will be 55 units.

Each visor requires a total of $3.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 29 closures on hand on May 1, 19 closures on May 31, and 21 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $2.25 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.

Required:

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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