[The following information applies to the questions displayed below.]

Shadee Corp. expects to sell 530 sun visors in May and 360 in June. Each visor sells for $17. Shadees beginning and ending finished goods inventories for May are 65 and 40 units, respectively. Ending finished goods inventory for June will be 70 units.

Each visor requires a total of $4.50 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, 23 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $8 per hour.

Required:

1. Determine Shadees budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $3.)

2. Compute the Shadees budgeted cost of goods sold for May and June.

Each visor requires a total of $4.50 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, 23 closures on May 31, and 23 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $700 per month, and variable manufacturing overhead is $1.50 per unit produced. Each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $8 per hour.

Additional information:

• Selling costs are expected to be 11 percent of sales.
• Fixed administrative expenses per month total $1,400.

Required:

Determine Shadee's budgeted selling and administrative expenses for May and June.

Each visor requires a total of $4.50 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, 23 closures on May 31, and 23 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.20 direct labor hours to produce and Shadee pays its workers $8 per hour.

Additional information:

• Selling costs are expected to be 11 percent of sales.
• Fixed administrative expenses per month total $1,400.