Question: Refer to the information in E8 5 for Shadee Corp Each

Refer to the information in E8-5 for Shadee Corp. 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 30 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30. Additionally, Shadee’s fixed manufacturing overhead is $1,000 per month, and variable manufacturing overhead is $1.25 per unit produced.

1. Prepare Shadee’s May and June raw materials purchases budget for the closures.
2. Prepare Shadee’s manufacturing overhead budget for May and June.

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  • CreatedFebruary 27, 2015
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