Shadee Corp. expects to sell 510 sun visors in May and 310 in June. Each visor sells for $21. Shadees beginning and ending finished goods inventories for May are 90 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.

1:

1. Determine Shadee's budgeted total sales for May and June.

2. Determine Shadee's budgeted production in units for May and June.

2:

Each visor requires a total of $4.50 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 27 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $1.25 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.

3:

Suppose that each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $6 per hour.

Required:

Determine Shadee's budgeted direct labor cost for May and June.