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Shadee Corp. expects to sell 550 sun visors in May and 320 in June. Each visor sells for $21. Shadees beginning and ending finished goods

Shadee Corp. expects to sell 550 sun visors in May and 320 in June. Each visor sells for $21. Shadees beginning and ending finished goods inventories for May are 60 and 45 units, respectively. Ending finished goods inventory for June will be 60 units.

Each visor requires a total of $3.50 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, 21 closures on May 31, and 22 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $1.75 per unit produced. Each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $7 per hour. Additional information: Selling costs are expected to be 12 percent of sales. Fixed administrative expenses per month total $1,600.

1. Required: Determine Shadee's budgeted selling and administrative expenses for May and June.

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