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 war to have 31 closures on hand on May 1, 18 closures on May 31, and 22 closures on June 30. Additionally, Shadeo's fixed manufacturing overhead is $1,100 per month, and variable manufacturing overhead is $2.50 per unit produced. Each visor takes 0.70 direct labor hours to produce and Shadee pays its workers $7 per hour. Additional information: • Selling costs are expected to be 12 percent of sales. • Fixed administrative expenses per month total $1,400. Required: 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.) Budgeted Selling and Administrative Expenses

Answer 1

Budgeted Sales:-
		May	June
a	Budgeted Sales Units	570	300
b	Selling Price per unit	$                                       20	$                                      20
c	Budgeted sales (a*b)	11,400	6,000
Budgeted Selling and Administrative expense:-
		May	June
	Selling Costs (12% of Budgeted sales)	1,368	720
	Fixed Administive Expenses	1,400	1,400
	Budgeted Selling and Administrative expense	2,768	2,120

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