Shadee Corp. expects to sell 590 sun visors in May and 430 in June. Each visor s

Question

Shadee Corp. expects to sell 590 sun visors in May and 430 in June. Each visor sells for $25. Shadee’s beginning and ending finished goods inventories for May are 80 and 45 units, respectively. Ending finished goods inventory for June will be 70 units

E8-6 Preparing Raw Materials Purchases and Manufacturing Overhead Budgets [LO 8-3c, e]

Each visor requires a total of $3.50 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 29 closures on hand on May 1, 18 closures on May 31, and 27 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $900 per month, and variable manufacturing overhead is $2.25 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.)

E8-7 Preparing Direct Labor Budget [LO 8-3d]

Suppose that each visor takes 0.80 direct labor hours to produce and Shadee pays its workers $12 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.)

Explanation / Answer

working Production Budget May June expected sales in units 590 430 Add Desired Ending Inventory 45 70 Total Needs 635 500 Less Beginning Inventory 80 45 Budgeted production in units 555 455 answers May June Budgeted cost of raw material purchases Budgeted production in units 555 455 Total required 555 455 Add Desired Ending Inventory 18 27 Total Needs 573 482 Less Beginning Inventory 29 18 ans 1 Budgeted cost of Closures purchases $544.00 464.00 ans 2 Budgeted Manufacturing overhead Budgeted production in units 555 455 Variable overhead per unit 2.25 2.25 Total variable overhead 1248.75 1023.75 Add: fixed manufacturing overhead 900 900 Budgeted Manufacturing overhead 2148.75 1923.75 Direct labor rate   not clear May June Budgeted production in units 555 455 Time required 0.8 0.8 Direct labor hours required D 444 364 Labor rate (not clear) L 12 12 Ans 3 Budgeted Direct labor cost D*L 5328 4368 If any dooubt please comment

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