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Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 590 sun shades in May and 340 in June.
Required information [The following information applies to the questions displayed below.] Shadee Corporation expects to sell 590 sun shades in May and 340 in June. Each shade sells for $149. Shadee's beginning and ending finished goods inventories for May are 65 and 50 shades, respectively. Ending finished goods inventory for June will be 70 shades. Each shade requires a total of $45.00 in direct materials that includes 4 adjustable poles that cost $5.00 each. Shadee expects to have 130 in direct materials inventory on May 1, 90 poles in inventory on May 31 , and 110 poles in inventory on June 30. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $14 per hour. Additionally, Shadee's fixed manufacturing overhead is $10,000 per month, and variable manufacturing overhead is $15 per unit produced. Additional information: - Selling costs are expected to be 11 percent of sales. - Fixed administrative expenses per month total $1,100. Required: Prepare Shadee's selling and administrative expense budget for May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places
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