Question

Shadee Corp. expects to sell 550 sun visors in May and 310 in June. Each visor sells for $19. Shadee’s beginning and ending finished goods inventories for May are 85 and 45 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 32 closures on hand on May 1, 19 closures on May 31, and 24 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $1.75 per unit produced.

Required:
1. Determine Shadee's budgeted cost of closures purchased for May and June. (Round your answers to 2 decimal places.)

	May June Budgeted Cost of Closures Purchased

2. Determine Shadee's budget manufacturing overhead for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.)

	May June Budgeted Manufacturing Overhead

Required information

Suppose that each visor takes 0.50 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.)

	May June Budgeted Direct Labor Cost

Answer 1