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Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadees beginning and ending finished goods
Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadees beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.
Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour Required Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate calculations. Round your an swers to 2 decimal places.) May June Budgeted Direct Labor Cost Hints Refe rences eBook & Resources Hint #1 Check my work value: Required information 1.11 points 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 30 closures on hand on May 1, 20 closures on May 31 and 25 closures on June 30 and variable manufacturing overhead is $1.25 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Required 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.) (Round your answer to 2 decimal places.) Manufacturing Cost per Unit 2. Determine Shadee's budgeted cost of goods sold for May and June. (Do not round your intermediate calculations. Use rounded cost per unit in intermediate calculations.) May June Budgeted Cost of Goods SoldStep by Step Solution
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