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Shadee Corp. expects to sell 590 sun visors in May and 450 in June. Each visor sells for $20. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 590 sun visors in May and 450 in June. Each visor sells for $20. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 55 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 $200 each Shadee wants to have 30 closures on hand on May 1. 17 closures on May 31, and 22 closures on June 30 and variable manufacturing overhead is $2.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $8 per hour.
Additional information : Selling costs are expected to be 10 percent of sales. Fixed administrative expenses per month total $1600.
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.)
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