Each visor requires a total of $4.00 in direct materials that includes an adjust

Question

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 35 closures on hand on May 1, 16 closures on May 31, and 26 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $7 per hour.         

Required:
1. Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $2.00.) (Round your answer to 2 decimal places.)

  

2. Compute the Shadee’s budgeted cost of goods sold for May and June. (Do not round your intermediate values. Use rounded cost per unit in intermediate calculations.)

Explanation / Answer

1. Material - 4.00

Labour 2.10 (0.3*7)

Variable oh 2.50

Fixed oh 2.00

Total cost = 10.60

2. No. Of units produced or sold not given to calculate the no Of units sold and its corresponding cost.

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