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Shadee Corp. expects to sell 520 sun visors in May and 430 in June. Each visor sells for $21. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 520 sun visors in May and 430 in June. Each visor sells for $21. Shadee's beginning and ending finished goods inventories for May are 75 and 45 units, respectively. Ending finished goods inventory for June will be 50 units. 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 $1.50 each. Shadee wants to have 31 closures on hand on May 1, 23 closures on May 31, and 27 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $1.50 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $11 per hour. Additional information Selling costs are expected to be 7 percent of sales. Fixed administrative expenses per month total $1,500 Required Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) May June Budgeted Selling and Administrative Expenses
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