Question

Suppose that each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour. Required: Determine Shadee's budgeted direct labor cost for May and June. (Do not round your intermediate values. Round your answers to 2 decimal places.) May June Budgeted Direct Labor Cost Required Information [The following information applies to the questions displayed below.] Hints Hint # Shadee Corp. expects to sell 510 sun visors in May and 440 in June. Each visor sells for $21. Shadee's beginning and ending finished goods inventories for May are 90 and 50 units, respectively. Ending finished goods inventory for June will be 55 units. Check my v

Answer 1

	May	June
Expected sales	510	440
Ending inventory	50	55
Total finished goods needed	560	495
Beginning inventory	-90	-50
Production units	470	445
Direct labor hour per unit	0.50	0.50
Total direct labor hour needed	470 x 0.50 = 235	445 x 0.50 = 225.5
Direct labor rate per hour	$8	$8
Budgeted cost	235 x 8 = $1,880	225.5 x 8 = $1,804

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