Question

Each visor requires a total of $5.50 in direct materials that includes an adjustable closure that the company purchases from a supplier at a cost of $2.00 each. Shadee wants to have 30 closures on hand on May 1, 21 closures on May 31, and 20 closures on June 30 and variable manufacturing overhead is $1.50 per unit produced. Suppose that each visor takes 0.10 direct labor hours to produce and Shadee pays its workers $11 per hour. Required: 1. Determine Shadee's budgeted manufacturing cost per visor. (Note: Assume that fixed overhead per unit is $1.50.) (Round your answer to 2 decimal places.) Manufacturing Cost per Unit 2. 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.) May June Budgeted Cost of Goods Sold

Answer 1

Solution 1:

Computation of budgeted manufacturing cost per visor - Shadee Corp.
Particulars	Per Unit
Direct Material	$5.50
Direct labor (0.1*$11)	$1.10
Variable manufacturing overhead	$1.50
Fixed manufacturing overhead	$1.50
Budgeted manufacturing cost per unit	$9.60

Note: Budgeted cost of goods sold could not be calculated as nos of unit sold is missing from question posted.