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 infomation E8-9 Preparing Selling and Administrative Expense Budget [LO 8-3g] 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 $2.00 oach. Shadee wants to have 30 closures on hand on May 1, 19 closures on May 31, and 25 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is S1,300 per month, and variable manufacturing overhead is $1.00 per nit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $7 per hour Additional infonmation: Selling costs are expected to be 11 peroent of sales. Fixed administrativ e expenses per month total $1,800 Required: Determine Shadec's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.) May June Budgeted Selling and Administrative Expenses References Worksheet Difficulty: 2 Medium 3g Prepare the E8-9 Preparing Selling and Administrative Expense Budget [LO 8-3g] Learning Objective: 08-0 following components of the operating budget: Selling and administrative expense budget.

Explanation / Answer

May June Variable selling and administrative expense 858 693 Fixed selling and administrative expense 1600 1600 Budgeted selling and administrative expense 2458 2293

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