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Shadee Corp. expects to sell 570 sun visors in May and 430 in June. Each visor sells for $27. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 570 sun visors in May and 430 in June. Each visor sells for $27. Shadees beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 50 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 $1.50 each. Shadee wants to have 33 closures on hand on May 1, 22 closures on May 31, and 23 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,100 per month, and variable manufacturing overhead is $2.25 per unit produced.
1. Determine Shadee's budgeted cost of closures purchased for May and June.
2. Determine Shadee's budget manufacturing overhead for May and June.
please help, will rate!
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