Shadee Corp. expects to sell 550 sun visors in May and 300 in June. Each visor sells for $30. Shadee's beginning and ending finished goods inventories for May are 70 and 60 units, respectively. Ending finished goods inventory for June will be 65 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 $2.00 each. Shadee wants to have 32 closures on hand on May 1, 18 closures on May 31, and 28 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $2.00 per unit produced. Each visor takes 0.90 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 12 percent of sales. Fixed administrative expenses per month total $1,500. 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.)
Shadee Corp. expects to sell 550 sun visors in May and 300 in June. Each visor sells for $30. Shadee's beginning and ending finished goods inventories for May are 70 and 60 units, respectively. Ending finished goods inventory for June will be 65 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 $2.00 each. Shadee wants to have 32 closures on hand on May 1, 18 closures on May 31, and 28 closures on June 30. Additionally, Shadee's fixed manufacturing overhead is $800 per month, and variable manufacturing overhead is $2.00 per unit produced. Each visor takes 0.90 direct labor hours to produce and Shadee pays its workers $8 per hour. Additional information: Selling costs are expected to be 12 percent of sales. Fixed administrative expenses per month total $1,500. 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.)
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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