Shadee Corp. expects to sell 540 sun visors in May and 370 in June. Each visor sells for $18. Shadees beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 60 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 26 closures on hand on May 1, 19 closures on May 31, and 24 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $10 per hour.

Required:

1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.)

2. Compute the Shadees budgeted cost of goods sold for May and June.