Suppose that each visor takes 0.90 direct labor hours to produce and Shadee pays

Question

Suppose that each visor takes 0.90 direct labor hours to produce and Shadee pays its workers $7 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 Required Information SB Exercise E8-5 to E8-10 Hints References eBook & Resources The following information applies to the questions displayed below.] Hint #1 Shadee Corp. expects to sell 530 sun visors in May and 330 in June. Each visor sells for $22. Shadee's beginning and ending finished goods inventories for May are 80 end 45 units, respectively. Ending finished goods inventory for June will be 60 units Check my work

Explanation / Answer

May June Expected sales 530 330 Add: Desired ending inventory 45 60 Total needs 575 390 Less: Beginning inventory 80 45 Expected production 495 345 Direct labor hours per unit 0.9 0.9 Total direct labor hours 445.5 310.5 Per hour rate 7 7 Budgeted direct labor cost 3118.50 2173.50

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