Question
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 590 sun visors in May and 350 in June. Each visor
[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 590 sun visors in May and 350 in June. Each visor sells for $20. Shadees beginning and ending finished goods inventories for May are 75 and 50 units, respectively. Ending finished goods inventory for June will be 50 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 26 closures on hand on May 1, 22 closures on May 31, and 24 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,500 per month, and variable manufacturing overhead is $1.25 per unit produced. Required: 1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.) 2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)
Suppose that each visor takes 0.60 direct labor hours to produce and Shadee pays its workers $10 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) This is all of the info provided, there is nothing else for me to add.
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