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Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $24. Shadee's beginning and ending finished
Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $24. Shadee's beginning and ending finished goods inventories for May are 65 and 50 units, respectively. Ending finished goods inventory for June will be 55 units. E8-9 (Algo) Preparing Selling and Administrative Expense Budget [LO 8-3g] Each visor requires a total of $5.50 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 31 closures on hand on May 1, 22 closures on May 31, and 23 closures on June 30 Additionally, Shadee's fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $6 per hour.
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