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Shadee Corp. expects to sell 590 sun visors in May and 420 in June. Each visor sells for $26. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 590 sun visors in May and 420 in June. Each visor sells for $26. Shadee's beginning and ending finished goods inventories for May are 80 and 50 units, respectively. Ending finished goods inventory for June will be 65 units. Each visor requires a total of $5.00 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 25 closures on hand on May 1, 19 closures on May 31, and 23 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $1,500 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
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