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Shadee Corporation expects to sell 640 sun shades in May and 380 in June. Each shade sells for $134. Shadee's beginning and ending finished
Shadee Corporation expects to sell 640 sun shades in May and 380 in June. Each shade sells for $134. Shadee's beginning and ending finished goods inventories for May are 70 and 40 shades, respectively. Ending finished goods inventory for June will be 60 shades. Suppose that each shade takes three direct labor hour to produce and Shadee pays its workers $13 per hour. Additionally, Shadee's fixed manufacturing overhead is $11,000 per month, and variable manufacturing overhead is $12 per unit produced. Required: 1. Prepare Shadee's direct labor budget for May and June. 2. Prepare Shadee's manufacturing overhead budget for May and June.
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Answer 1 Direct Labor Budget To prepare Shadees direct labor budget we need to calculate the total direct labor cost for each month based on the numbe...Get Instant Access to Expert-Tailored Solutions
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