SB Exercise E8-5 to E8-10

[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 640 sun visors in May and 360 in June. Each visor sells for $20. Shadees beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 50 units.

E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, el Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 35 closures on hand on May 1, 16 closures on May 31, and 20 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $1.00 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.) May June Budgeted Cost of Closures Purchased 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Manufacturing Overhead