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Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $30. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 630 sun visors in May and 440 in June. Each visor sells for $30. Shadee's beginning and ending finished goods inventories for May are 65 and 55 unlts, respectively. Ending finished goods inventory for June will be 60 units. Each visor requires a total of $5.00 in direct materials that indudes an adjustable closure that the company purchases from a supplier at a cost of $250 each. Shadee wants to have-29 closures on hand on May 1, 22 closures on May 31 , and 26 closures on June 30 . Additionally, Shadee's fixed manufacturing overheod is $800 per month, and variable manufacturing overheod is $225 per unit produced. Eoch visor takes 070 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: - Selling costs are expected to be 9 percent of sales - Fixed administrative expenses per month total $1,500 Devermine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Required: Round your answers to 2 decimal places.)
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