SB Exercise E8-5 to E8-10

[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 570 sun visors in May and 440 in June. Each visor sells for $23. Shadees beginning and ending finished goods inventories for May are 85 and 45 units, respectively. Ending finished goods inventory for June will be 55 units.

2) -6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e]

Each visor requires a total of $5.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 29 closures on hand on May 1, 21 closures on May 31, and 20 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $2.50 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.) 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)

3) E8-7 Preparing Direct Labor Budget [LO 8-3d]

Suppose that each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $10 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)