[The following information applies to the questions displayed below.] Shadee Corp. expects to sell 620 sun visors in May and 410 in June. Each visor sells for $20. Shadees beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.

References

Section BreakSB Exercise E8-5 to E8-10

2.

value: 2.00 points

Required information

E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e]

Each visor requires a total of $3.50 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 32 closures on hand on May 1, 15 closures on May 31, and 24 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $2.00 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.)