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Required information [The following information applies to the questions displayed below.) Shadee Corp. expects to sell 620 sun visors in May and 430 in June.
Required information [The following information applies to the questions displayed below.) Shadee Corp. expects to sell 620 sun visors in May and 430 in June. Each visor sells for $24. Shadee's beginning and ending finished goods inventories for May are 70 and 50 units, respectively. Ending finished goods inventory for June will be 70 units. Each visor requires a total of $4.00 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 27 closures on hand on May 1, 19 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $0.75 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. 2. Determine Shadee's budget manufacturing overhead for May and June
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