Question

Shadee Corp. expects to sell 630 sunvisors in May and 360 in June. Each visor sells for $18. Shadees beginning and ending finished goods inventory's for May are 65 and 55 units respectively. ending finished goods inventory for June will be 65 units.

Required:

Each visor requires a total of $3.50 indirect materials that includes an adjustable closure that the company purchases from a supplier at a cost of $1.50 each. Shadee wants to have 32 closures on hand on May 1, 17 closures on May 31, and 28 closures on June 30. Additionally, Shadees fixed manufacturing overhead is $1600 per month, and variable manufacturing overhead is $1.50 per unit produced.

1A. determine Shadees budget cost of closures purchase for May and June. (round your answer 2 decimal places.)

1B. Determine Shadees budget manufacturing overhead for May and June. (do not round your intermediate values. Round your answers to two decimal places)

1C. suppose that each visor takes 0.60 direct labor hours to produce and Shadee Pays its workers nine dollars per hour. Determine Shadees budgeted Direct labor cost for May and June. (do not round your intermediate values. Round your answer to two decimal places.)

Answer 1

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