Shadee Corp. expects to sell 510 sun visors in May and 400 in June. Each visor...

Shadee Corp. expects to sell 510 sun visors in May and 400 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 70 and 55 units, respectively. Ending finished goods inventory for June will be 60 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 $1.50 each. Shadee wants to have 25 closures on hand on May 1, 17 closures on May 31, and 27 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,200 per month, and variable manufacturing overhead is $1.50 per unit produced.

Required:

1. Determine Shadee's budgeted cost of closures purchased for May and June.

2. Determine Shadee's budget manufacturing overhead for May and June.

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Expert Solution

ekkarill92 answered 1 year ago

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