Question: Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods
Shadee Corp. expects to sell 600 sun visors in May and 800 in June. Each visor sells for $18. Shadee's beginning and ending finished goods inventories for May are 75 and 50 units, respectively, Ending finished goods inventory for June will be 60 units. 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 $125 per unit produced. Each visor takes 0.30 direct labor hours to produce and Shadee pays its workers $9 per hour. Additional information: Selling costs are expected to be 6 percent of sales Fixed administrative expenses per month total $1,200 Required: Determine Shadee's budgeted selling and administrative expenses for May and June May June Budgeted Selling and Administrative Expenses
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
