Shadee Corp. expects to sell 520 sun visors in May and 420 in June. Each visor s

Question

Shadee Corp. expects to sell 520 sun visors in May and 420 in June. Each visor sells for $15. Shadee’s beginning and ending finished goods inventories for May are 85 and 50 units, respectively. Ending finished goods inventory for June will be 60 units.

D Chapter 8 Homework ezto.mheducation.com/hm.tpx?-0.25826883566 196046 1520290721538 elue 2.00 points Required information E8-7 Preparing Direct Labor Budget [LO 8-3d] Suppose that each visor takes 0.30 diroct 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 References Worksheet Difficulty: 2 Medium E8-7 Preparing Direct Labor Budget [Lo 8-3d] Learning Objective: 08-03d Prepare the following components of the operating budget: Direct labor budget.

Explanation / Answer

Budgeted direct labour cost :

May June Sales 520 420 Desired ending inventory 50 60 Total 570 480 Beginning unit (85) (50) Production units 485 430 Labour hour per unit 0.30 0.30 Proudction hours 145.5 129 Rate per hour 7 7 Direct labour cost 1018.50 903

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