Shadee Corp. expects to sell 580 sun visors in May and 350 in June. Each visor sells for $21. Shadees beginning and ending finished goods inventories for May are 65 and 60 units, respectively. Ending finished goods inventory for June will be 60 units.

E8-6 (Algo) Preparing Direct Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e]

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 $2.50 each. Shadee wants to have 34 closures on hand on May 1, 20 closures on May 31, and 22 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $2.00 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.

Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.) May June Budgeted Cost of Closures Purchased Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Manufacturing Overhead