Shadee Corp. expects to sell 590 sun visors in May and 350 in June. Each visor...

Shadee Corp. expects to sell 590 sun visors in May and 350 in June. Each visor sells for $18. Shadee’s beginning and ending finished goods inventories for May are 65 and 55 units, respectively. Ending finished goods inventory for June will be 55 units.

Each visor requires a total of $4.00 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.50 each. Shadee wants to have 31 closures on hand on May 1, 20 closures on May 31, and 27 closures on June 30. Additionally, Shadee’s 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.)

3. Suppose that each visor takes 0.40 direct labor hours to produce and Shadee pays its workers $8 per hour.

Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)

Expert Solution

ekkarill92 answered 2 years ago

Shadee Corp. expects to sell 590 sun visors in May and 300 in June. Each visor...

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