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 wants to have 31 closures on hand on May 1, 20 closures on May 31, and 25 closures on June 30 Additionally, Shadee's fixed manufacturing overhead is $1,300 per month, and variable manufacturing overhead is $2.75 per unit produced. Each visor takes 0.50 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 10 percent of sales. Fixed administrative expenses per month total $1,700 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.) May June Budgeted Selling and Administrative Expenses Required Information The following information applies to the questions displayed below.] Н Shadee Corp. expects to sell 510 sun visors in May and 440 in June. Each visor sells Н 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

Answer 1

	May	June
Sales units	510	440
Selling price per unit	$21	$21
Sales ($)	510 x 21 = $10,710	440 x 21 = $9,240
Selling costs	10,710 x 10% = $1,071	9,240 x 10% = $924
Fixed administrative expense	1,700	1,700
Budgeted Selling and Administrative Expenses ( Selling Cost + Fixed administrative expense)	$2,771	$2,624

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