Question

Each visor requires a total of $4.50 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 27 closures on hand on May 1, 20 closures on May 31, and 27 closures on June 30 and variable manufacturing overhead is $2.50 per unit produced. Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour.

Determine Shadee’s budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.80.) (Round your answer to 2 decimal places.)
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.)

Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour.

Additional information:

Selling costs are expected to be 11 percent of sales.

Fixed administrative expenses per month total $1,300.

Determine Shadee's budgeted selling and administrative expenses for May and June. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

Answer 1

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Shadee’s
Direct labor hour per unit	0.50	A
Direct labor rate per hour	8.00	B
Direct labor rate per unit	4.00	C=A*B
Budgeted manufacturing cost per visor	$
Direct material	4.50
Direct labor	4.00
Variable manufacturing overhead	2.50
Fixed manufacturing overhead	1.80
Budgeted manufacturing cost per visor	12.80
Compute the Shadee’s budgeted cost of goods sold for May and June:
I cannot calculated this as number of units sold is not given.
Determine Shadee's budgeted selling and administrative expenses for May and June.
Selling costs are expected to be 11 percent of sales.
Fixed administrative expenses per month total $1,300.
I cannot calculated this as sales value is not given, so I cannot calculated Selling cost.